Showing 1 - 9 of 9
We analyze costly information acquisition and information revelation in groups in a dynamic setting. Even when group members have perfectly aligned interests the group may inefficiently delay decisions. When deadlines are far away, uninformed group members freeride on each others' efforts to...
Persistent link: https://www.econbiz.de/10009246605
We develop a theory of imperfect competition with loss-averse consumers. All consumers are fully informed about match … value and price at the time they make their purchasing decision. However, a share of consumers are initially uncertain about … other consumers are perfectly informed all the time. We derive pricing implications in duopoly with asymmetric firms. In …
Persistent link: https://www.econbiz.de/10008468627
This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its implications in terms of soundness of the banking system. We find that, when banks have a complete control over the volatility of their loan portfolio, public disclosure...
Persistent link: https://www.econbiz.de/10005123714
This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking behaviour, under different assumptions about deposit insurance and the dissemination of financial information. We find that lower entry costs foster competition in deposit rates and...
Persistent link: https://www.econbiz.de/10005124322
We study ex post information rents in sequential screening models where the agent receives private ex ante and ex post information. The principal has to pay ex post information rents for preventing the agent to coordinate lies about his ex ante and ex post information. When the agent's ex ante...
Persistent link: https://www.econbiz.de/10011084403
analyse a monopoly firm’s choice of advertising content and the information disclosed to consumers. The firm advertises only …
Persistent link: https://www.econbiz.de/10005662329
This paper revisits recent empirical research on buyer credulity in arts auctions and auctions for assets in general. We show that elementary results in auction theory can fully account for some stylized facts on asset returns that have been held to suggest that sellers of assets can exploit...
Persistent link: https://www.econbiz.de/10005666660
We consider a lie-catching experiment with 9240 judgements. A set of videotapes shows subjects participating in a tax compliance experiment. The subjects chose whether or not to misreport. Subjects knew that underreporters were chosen for an audit with some probability. An audit led to detection...
Persistent link: https://www.econbiz.de/10011084015
The objective of this paper is to understand the implications for consumption and portfolio choice of the separation of an investor’s risk aversion and elasticity of intertemporal substitution that is made possible by recursive utility, in contrast to expected utility, where the two are...
Persistent link: https://www.econbiz.de/10005661747