After the close of an auction, the winning bidder may find that he is unable to carry out his bid offer. This paper seeks to determine what measures the seller should take to maximize his share of the surplus when bidders are privately informed about their risk of default. Special attention is...

We consider a model of oligopolistic firms that have private information about their cost structure. Prior to competing in the market a competitive advantage, i.e., a cost reducing technology, is allocated to a subset of the firms by means of a multi-object auction. After the auction either all...

The role of Annual Percentage Rate (APR) in installment plan selection was investigated. The choice of analyzing APR was motivated by its wide diffusion due to the mandatory disclosure acts. There have been doubts towards consumer understanding of APR. A sample of 299 consumers were given five...

This paper studies empirically how uncertainty affects speculation in the foreign exchange markets. We use the dispersion of survey forecasts of key macroeconomic variables to measure uncertainty about fundamentals. We find that uncertainty has a non-monotone effect on exchange rate pressures:...

We analyse how consumer heterogeneity affects buying behaviour and the monopoly pricing of a network good and its usage. Under perfect information, sufficiently high heterogeneity yields a unique equilibrium, and the unit price is increasing in heterogeneity. Under incomplete information, we...

A teacher needs, as an economic analyst, to use indicators that give her accurate information about the classes. This work aims at testing the hypothesis: “The perceptions of the students about the subjects and about the teacher vary according to the specificity of each class”. For this...

Information flows are necessary for well-functioning financial markets. However, in many emerging markets, the legal and institutional preconditions for proper information flow are not met. How do such markets respond? We argue that they respond by developing innovative information transmission...