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Network Effects, Nonlinear Pricing and Entry Deterrence

Sundararajan, Arun - EconWPA - 2003

A number of products that display positive network effects are used in variable quantities by heterogeneous customers. Examples include corporate operating systems, infrastructure software, web services and networking equipment. In many of these contexts, the magnitude of network effects are...

Persistent link: https://www.econbiz.de/10005561494

Bilateral Uncertainty in a Model of Job-Market Screening with Intermediaries

Schweinzer, Paul - EconWPA - 2001

We look at a job-market model of bilateral uncertainty. Workers are uncertain about what job descriptions advertised by firms really mean and firms are uncertain about the qualifications of workers before they are interviewed. Both types of uncertainty can be resolved but both processes are...

Persistent link: https://www.econbiz.de/10005407591

Debt contracts with ex-ante and ex-post asymmetric information: an example.

Carlier, G.; Renou, L. - EconWPA - 2005

We consider a simple model of lending and borrowing combining two informational problems: adverse selection and costly state verification. Our analysis highlights the interaction between these two informational problems. We notably show that the higher the monitoring cost, the less...

Persistent link: https://www.econbiz.de/10005550923

Managing Digital Piracy: Pricing, Protection and Welfare

Sundararajan, Arun - EconWPA - 2003

This paper analyzes the optimal choice of pricing schedules and technological deterrence levels in a market with digital piracy, when legal sellers can sometimes control the extent of piracy by implementing digital rights management (DRM) systems. It is shown that the seller's optimal pricing...

Persistent link: https://www.econbiz.de/10005561013

Nonlinear pricing of information goods

Sundararajan, Arun - EconWPA - 2003

This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible, and administering usage-based pricing may involve transaction costs. It is shown that offering fixed- fee pricing in...

Persistent link: https://www.econbiz.de/10005561446

STRUCTURAL MODELS IN CONSUMER CREDIT

Andrade, Fabio de; Thomas, Lyn - EconWPA - 2004

We propose a structural credit risk model for consumer lending using option theory and the concept of the value of the … consumer’s reputation. Using Brazilian empirical data and a credit bureau score as proxy for creditworthiness we compare a … the Basel II approach. Our conclusions partially support that approach for modelling the credit risk of portfolios of …

Persistent link: https://www.econbiz.de/10005126110

The Economics of Election Campaign Spending Limits

Palda, Filip - EconWPA - 2001

Spending limits are an important rule in the electoral game. Critics of limits claim that incumbents write these rules to keep down promising challengers. Their arguments are seductive but do not stand on a firm empirical base. The data seem quite eager to support or reject the critics' view,...

Persistent link: https://www.econbiz.de/10005412472

A Simple Dynamic Model of Credit and Aggregate Demand

Diaz-Bautista, Alejandro; Escandon, Julio R. - EconWPA - 2003

The purpose of the paper is to present a tractable model of an old topic which is becoming more important in macroeconomics: the link between financial structure and economic activity.

Persistent link: https://www.econbiz.de/10005126180

Stealth-Trading: Which Traders' Trades Move Stock Prices?

Chakravarty, Sugato - EconWPA - 2002

Using audit trail data for a sample of NYSE firms, we show that medium size trades are associated with a disproportionately large cumulative stock price change relative to their proportion of all trades and volume. This result is consistent with the predictions of the stealth- trading hypothesis...

Persistent link: https://www.econbiz.de/10005134701

Equilibrium in financial markets with adverse selection

Takalo, Tuomas; Toivanen, Otto - EconWPA - 2004

We study a financial market adverse selection model where all agents are endowed with initial wealth and choose to invest as entrepreneurs or financiers, or not to invest. We show that often a lack of outside finance leads to the emergence of financial markets where availability of outside...

Persistent link: https://www.econbiz.de/10005134723