Similar Search Results

Kolb, Aaron M. - In: Journal of Economic Theory 157 (2015) C, pp. 973-1000

A player of privately known strength chooses when to enter a market, and an incumbent chooses whether to compete or concede. Information about the potential entrant's type is revealed publicly according to an exogenous news process and the timing of entry. I analyze stationary equilibria using...

Persistent link: https://www.econbiz.de/10011263574

Learning a population distribution

Yoo, Seung Han - In: Journal of Economic Dynamics and Control 48 (2014) C, pp. 188-201

This paper introduces a dynamic Bayesian game with an unknown population distribution. Players do not know the true population distribution and assess it based on their private observations using Bayes׳ rule. First, we show the existence and characterization of an equilibrium in which each...

Persistent link: https://www.econbiz.de/10011077504

Discount Pricing

Armstrong, Mark; Chen, Yongmin - C.E.P.R. Discussion Papers - 2013

options, and there is less incentive to search. We also discuss a behavioral model where the propensity to buy increases when …

Persistent link: https://www.econbiz.de/10011083448

Search Costs, Demand-Side Economies and the Incentives to Merge under Bertrand Competition

Moraga-González, José-Luis; Petrikaite, Vaiva - C.E.P.R. Discussion Papers - 2013

search sequentially for satisfactory deals. In the pre-merger symmetric equilibrium, consumers visit firmsrandomly. However … non-merging stores, and only when they do not find a satisfactory product there they visit the merging firms. As search … products of the constituent firms, which generates sizable search economies. We show that such demand-side economies can confer …

Persistent link: https://www.econbiz.de/10011083482

Constrained Discretion and Central Bank Transparency

Bianchi, Francesco; Melosi, Leonardo - C.E.P.R. Discussion Papers - 2014

We develop a theoretical framework to quantitatively assess the general equilibrium effects and welfare implications of central bank reputation and transparency. Monetary policy alternates between periods of active inflation stabilization and periods during which the emphasis on inflation...

Persistent link: https://www.econbiz.de/10011084074

Consumer Search and Prices in the Automobile Market

Moraga-González, José-Luis; Sándor, Zsolt; … - C.E.P.R. Discussion Papers - 2015

demand with optimal consumer search. Consumers first choose which products to search; then, once they learn the utility they … characteristics but also from variation in the costs of searching them. We apply the model to the automobile industry. Our search cost … estimate is highly significant and indicates that consumers conduct a limited amount of search. Estimates of own- and cross …

Persistent link: https://www.econbiz.de/10011201362

Theocracy and resilience against economic sanctions

Naghavi, Alireza; Pignataro, Giuseppe - In: Journal of Economic Behavior & Organization 111 (2015) C, pp. 1-12

This paper provides a simply theory to explain the impact of sanctions on a regime's policies and behavior. Sanctions are generally put to strip the target country from its available rents and weaken the government's stance against growing discontent in the population. We show however that...

Persistent link: https://www.econbiz.de/10011208870

Strategic learning in teams

Klein, Nicolas - In: Games and Economic Behavior 82 (2013) C, pp. 636-657

This paper analyzes a two-player game of strategic experimentation with three-armed exponential bandits in continuous time. Players play bandits of identical types, with one arm that is safe in that it generates a known payoff, whereas the likelihood of the risky armsʼ yielding a positive...

Persistent link: https://www.econbiz.de/10011049665

Does one Bayesian make a difference?

Mueller-Frank, Manuel - In: Journal of Economic Theory 154 (2014) C, pp. 423-452

This paper develops a model of repeated interaction in social networks among agents with differing degrees of sophistication. The focus of the model is observational learning; that is, each agent receives initial private information and makes inferences regarding the private information of...

Persistent link: https://www.econbiz.de/10011076679

The optimal choice of pre-launch reviewer

Gill, David; Sgroi, Daniel - In: Journal of Economic Theory 147 (2012) 3, pp. 1247-1260

We develop a framework in which: (i) a firm can have a new product tested publicly before launch; and (ii) tests vary in toughness, holding expertise fixed. Price flexibility boosts the positive impact on consumer beliefs of passing a tough test and mitigates the negative impact of failing a...

Persistent link: https://www.econbiz.de/10011042926