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Demougin, Dominique; Fluet, Claude - Centre Interuniversitaire sur le Risque, les Politiques … - 2003

We consider the cost of providing incentives through tournaments when workers are inequity averse and performance … envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less …

Persistent link: https://www.econbiz.de/10005696268

Five Open Questions About Prediction Markets

Wolfers, Justin; Zitzewitz, Eric - C.E.P.R. Discussion Papers - 2006

Interest in prediction markets has increased in the last decade, driven in part by the hope that these markets will prove to be valuable tools in forecasting, decision-making and risk management - in both the public and private sectors. This paper outlines five open questions in the literature,...

Persistent link: https://www.econbiz.de/10005504341

Macroeconomic Derivatives: An Initial Analysis of Market-Based Macro Forecasts, Uncertainty and Risk

Gürkaynak, Refet S.; Wolfers, Justin - C.E.P.R. Discussion Papers - 2006

September 2002, a new market in 'Economic Derivatives' was launched allowing traders to take positions on future values of several macroeconomic data releases. We provide an initial analysis of the prices of these options. We find that market-based measures of expectations are similar to...

Persistent link: https://www.econbiz.de/10005656457

Prediction Markets in Theory and Practice

Wolfers, Justin; Zitzewitz, Eric - C.E.P.R. Discussion Papers - 2006

Prediction Markets, sometimes referred to as 'information markets', 'idea futures' or 'event futures', are markets where participants trade contracts whose payoffs are tied to a future event, thereby yielding prices that can be interpreted as market-aggregated forecasts. This article summarizes...

Persistent link: https://www.econbiz.de/10005662203

Incentives Versus Sorting in Tournaments: Evidence from a Field Experiment

Leuven, Edwin; Oosterbeek, Hessel; Sonnemans, Joep; van … - C.E.P.R. Discussion Papers - 2008

A vast body of empirical studies lends support to the incentive effects of rank-order tournaments. Evidence comes from … tournaments may bias these non-experimental studies, whereas short task duration or lack of distracters may limit the external … where students selected themselves into tournaments with different prizes. Within each tournament the best performing …

Persistent link: https://www.econbiz.de/10005136509

Public and Private Insurance with Costly Transactions

Bertola, Giuseppe; Koeniger, Winfried - C.E.P.R. Discussion Papers - 2010

We characterize how public insurance schemes are constrained by hidden financial transactions. When non-exclusive private insurance entails increasing unit transaction costs, public transfers are only partly offset by hidden private transactions, and can influence consumption allocation. We show...

Persistent link: https://www.econbiz.de/10008682880

Risk Classification and Health Insurance

Dionne, Georges; Rothschild, Casey G. - Centre Interuniversitaire sur le Risque, les Politiques … - 2012

Risk classification refers to the use of observable characteristics by insurers to group individuals with similar expected claims, compute the corresponding premiums, and thereby reduce asymmetric information. With perfect risk classification, premiums fully reflect the expected cost associated...

Persistent link: https://www.econbiz.de/10010693198

Universal Basic Income versus Unemployment Insurance

Fabre, Alice; Pallage, Stéphane; Zimmermann, Christian - Centre Interuniversitaire sur le Risque, les Politiques … - 2014

In this paper we compare the welfare effects of unemployment insurance (UI) with an universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should...

Persistent link: https://www.econbiz.de/10011071798

Feeling the blues. Moral hazard and debt dilution in Eurobonds before 1914

Esteves, Rui; Tuncer, Ali Coskun - C.E.P.R. Discussion Papers - 2014

Debt mutualisation through Eurobonds has been proposed as a solution to the Euro crisis. Although this proposal found some support, it also attracted strong criticisms as it risks raising the spreads for strong countries, diluting legacy debt and promoting moral hazard by weak countries. Because...

Persistent link: https://www.econbiz.de/10011084064

The Empirical Measure of Information Problems with Emphasis on Insurance Fraud and Dynamic Data

Dionne, Georges - Centre Interuniversitaire sur le Risque, les Politiques … - 2012

We discuss the difficult question of measuring the effects of asymmetric information problems on resource allocation. Three problems are examined: moral hazard, adverse selection, and asymmetric learning. One theoretical conclusion, drawn by many authors, is that information problems may...

Persistent link: https://www.econbiz.de/10010570021