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Public and Private Learning from Prices, Strategic Substitutability and Complementarity, and Equilibrium Multiplicity
Manzano, Carolina; Vives, Xavier - C.E.P.R. Discussion Papers - 2010
We study a general static noisy rational expectations model, where investors have private information about asset payo¤s, with common and private components, and about their own exposure to an aggregate risk factor, and derive conditions for existence and uniqueness (or multiplicity) of...
Persistent link: https://www.econbiz.de/10008466347
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Facilitating Consumer Learning in Insurance Markets—What Are the Welfare Effects?
Lagerlöf, Johan N. M.; Schottmüller, Christoph - C.E.P.R. Discussion Papers - 2013
What are the welfare effects of a policy that facilitates for insurance customers to privately and covertly learn about their accident risks? We endogenize the information structure in Stiglitz's classic monopoly insurance model. We first show that his results are robust: For a small information...
Persistent link: https://www.econbiz.de/10011083449
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Monopoly Insurance with Endogenous Information
Lagerlöf, Johan N. M.; Schottmüller, Christoph - C.E.P.R. Discussion Papers - 2013
We study a monopoly insurance model with endogenous information acquisition. Through a continuous effort choice, consumers can determine the precision of a privately observed signal that is informative about their accident risk. The equilibrium effort is, depending on parameter values, either...
Persistent link: https://www.econbiz.de/10011084544
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Who Should Pay for Certification?
Stahl, Konrad; Strausz, Roland - C.E.P.R. Discussion Papers - 2011
Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer or the seller? Our answer --- the seller --- follows from a non--trivial analysis revealing a clear intuition. Buyer--induced certification acts as an inspection device, whence...
Persistent link: https://www.econbiz.de/10008854541
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Organizations, Diffused Pivotality and Immoral Outcomes
Falk, Armin; Szech, Nora - C.E.P.R. Discussion Papers - 2013
money or to save mice. We compare a Baseline treatment where subjects are fully pivotal to a Diffused-Pivotality treatment … subject opts for killing. The fraction of subjects deciding to kill is higher when pivotality is diffused. The likelihood of … killing is monotone in subjective perceptions of pivotality. On an aggregate level many more mice are killed in Diffused-Pivotality …
Persistent link: https://www.econbiz.de/10011084048
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Competing with Menus of Tariff Options
Miravete, Eugenio J - C.E.P.R. Discussion Papers - 2007
I study how firms actually compete in nonlinear tariffs by analyzing whether the incumbent and entrant's decisions to offer a given number of tariff options are interrelated. The goal is to shed some light on those dynamic and strategic aspects of tariff menus that are currently ignored by...
Persistent link: https://www.econbiz.de/10005123929
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Wage Bargaining in Industries with Market Power
Bentolila, Samuel; Dolado, Juan J.; Padilla, Atilano Jorge - C.E.P.R. Discussion Papers - 1994
In this paper we develop a fully game-theoretic version of the right-to-manage model of firm-level bargaining where strategic interactions among firms are explicitly recognized. Our main aim is to investigate how equilibrium wages and employment react to changes in the labour and product...
Persistent link: https://www.econbiz.de/10005656145
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War Signals: A Theory of Trade, Trust and Conflict
Rohner, Dominic; Thoenig, Mathias; Zilibotti, Fabrizio - C.E.P.R. Discussion Papers - 2011
We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form beliefs on the average propensity to trade of the other...
Persistent link: https://www.econbiz.de/10009003383
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Does Trade Integration Alter Monetary Policy Transmission?
Cwik, Tobias; Müller, Gernot; Wolters, Maik H - C.E.P.R. Discussion Papers - 2010
This paper explores the role of trade integration - or openness - for monetary policy transmission in a medium-scale new Keynesian model. Allowing for strategic complementarities in price-setting, we highlight a new dimension of the exchange rate channel by which monetary policy directly impacts...
Persistent link: https://www.econbiz.de/10008677243
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Guru Dreams and Competition: An Anatomy of the Economics of Blogs
Dong, Yi; Massa, Massimo; Zhang, Hong - C.E.P.R. Discussion Papers - 2015
The rise of social media has encouraged guru dreams because of the low entry barrier and highly skewed distribution of public attention that characterize social media. The pursuit of guru status, however, may be achieved through information provision or cheap talk, and competition inherent to...
Persistent link: https://www.econbiz.de/10011196033