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We analyze tournaments of heterogeneous players from an organizer’s perspective. Using a simple model of a noisy … formats – contests, binary elimination tournaments, and round-robin tournaments. We show which formats are preferred in the …
Persistent link: https://www.econbiz.de/10005357509
This paper examines the choice of tools for managing a firm’s operational risks: cash reserves, insurance contracts, and financial assets under an optimal financing contract that solves moral hazard between insiders and outside investors. Risk management is valuable as it reduces the costs of...
Persistent link: https://www.econbiz.de/10010842923
Empirical evidence on developing countries highlights that poor farm-households are less keen to adopt high risk / high return technologies than rich households. Yet, they tend to be more vulnerable to income shocks than the rich. This paper develops a model of informal risk-sharing with...
Persistent link: https://www.econbiz.de/10011098249
Moral hazard and adverse selection impede the development of formal crop insurance markets in developing countries. Besides, the risk mitigation provided by informal risk-sharing arrangements is restricted by their inability to protect against covariate shocks. In this context, index-based...
Persistent link: https://www.econbiz.de/10011098253