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Buyer feedback as a filtering mechanism for reputable sellers

Laureti, Paolo; Slanina, Frantisek; Yu, Yi-Kuo; Zhang, … - EconWPA - 2003

We propose a continuum model for the description of buyer and seller dynamics in an Internet market. The relevant variables are the research effort of buyers and the sellers' reputation building process. We show that, if a commercial website gives consumers the possibility to rate credibly...

Persistent link: https://www.econbiz.de/10005407517

Missing Contracts: On the Rationality of not Signing a Prenuptial Agreement

Nicolo', Antonio; Tedeschi, Piero - EconWPA - 2004

Many couples do not sign prenuptial agreements, even though this often leads to costly and inefficient litigation in case of divorce. In this paper we show that strategic reasons may prevent agents from signing a prenuptial agreement. Partners which have high productivity in marital activities...

Persistent link: https://www.econbiz.de/10005407538

A Dynamic Analysis of Bid-Ask Spreads with Multiple Trade Sizes

Takayama, Shino; Ozsoylev, Han - EconWPA - 2005

This paper studies how the trade size and the historical sequence of trades affect bid-ask spreads, investors’ trading strategies, and the market maker’s learning process in a multi-period economy. First, we show that there is a nonzero cut-off size below which informed traders never buy or...

Persistent link: https://www.econbiz.de/10005413239

Inventory Signals

Lai, Richard Kum-yew - EconWPA - 2005

Among practitioners, inventory is often thought to be the root of all evil in operations management. The stock market hates it, the media abhors it, and managers have come to fear it. But high inventory levels can also be the result of strategic buying and high-availability strategies. The...

Persistent link: https://www.econbiz.de/10005413245

A Note on Firms' Strategic Behaviour During an IPO

Weiss, Pia - EconWPA - 2002

When potential shareholders cannot observe the business conditions of the firms, the latter desiring to acquire capital by an IPO and operating under less favourable business conditions have a strong incentive to appear more successful.

Persistent link: https://www.econbiz.de/10005077052

Should Central Banks Burst Bubbles?

Conlon, John - EconWPA - 2005

because, in those states where the central bank turns out not to deflate prices, bad sellers become more confident of selling …

Persistent link: https://www.econbiz.de/10005550948

Credit Merchandising in the Postbellum American South: Information and Barriers to Entry

Molinari, M. Cristina - EconWPA - 2005

, summarized in their One Kind of Freedom, raised many controversies. One of them concerns the degree of competition among the … competition between an advancing merchant and a potential entrant, the practice of over-pricing is shown to be an equilibrium …

Persistent link: https://www.econbiz.de/10005556878

Ex Ante Versus Ex Post Regulation of Bank Capital

Daripa, Arup; Varotto, Simone - EconWPA - 2005

regulation.We construct a simple framework to analyze this issue. In our model the risk carried by a bank as well as managerial … risk preference are a bank's private information. We show that ex ante constraints waste the superior risk information of a … bank, while an ex post regime makes full use of it. However, the latter is more vulnerable to the problem of unknown …

Persistent link: https://www.econbiz.de/10005561710

The Insider's Curse

Hernando-Veciana, Angel; Tröge, Michael - EconWPA - 2005

have incentives to disclose her private information if she faces sufficiently strong competition from the outsiders. We …

Persistent link: https://www.econbiz.de/10005561808

The Core of Economies with Asymmetric Information: An Axiomatic Approach

Volij, Oscar; Lee, Darin - EconWPA - 1997

We propose two generalizations of the Davis Maschler reduced game property to economies with asymmetric information and apply them in the characterization of two solution concepts. One is Wilson's (1978) Coarse Core and the other is a subsolution of it which we call the Coarse+ Core.

Persistent link: https://www.econbiz.de/10005118523