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We study optimal nominal demand policy in a flexible price economy with monopolistic competition where firms have imperfect common knowledge about the shocks hitting the economy. Information imperfections emerge endogenously because firms are assumed to have finite (Shannon) capacity to process...
Persistent link: https://www.econbiz.de/10005329030
the screening problem faced by the monopolist seller of a network good. By applying monotone comparative static tools, we … demonstrate that the joint presence of asymmetric information and positive network effects leads to a strict downward distortion … the intensity of network effects, and that a discriminating monopoly may supply larger quantities for all consumers than a …
Persistent link: https://www.econbiz.de/10005063713
This paper examines empirically the impact of reproductive externalities on fertility behaviour in one developing society - Kenya. We examine this issue by quantifying the effects of group membership on the number of children ever born. The focus of this study is the identification of structural...
Persistent link: https://www.econbiz.de/10005699645
The core is extended to games with incomplete information. The feasible set is characterized by incentive-compatible mechanisms, and blocking may similarly be organized by an incentive compatible mediation plan. Nonemptiness is proven for games with a balanced structure
Persistent link: https://www.econbiz.de/10005342211
We solve in closed form the optimal consumption / portfolio choice problem for the class of isoelastic utility functions under incomplete information about the mean return of the stock price. Our approach consists in converting the original investor's problem into an equivalent program where the...
Persistent link: https://www.econbiz.de/10005129785
A core allocation of a complete information economy can be characterized as one that would not be unanimously rejected in favor of another feasible alternative by any coalition. We use this test of coalitional voting in an incomplete information environment to formalize a notion of resilience....
Persistent link: https://www.econbiz.de/10005130219
We extend the $\Delta$-rationalizability (see Battigalli and Siniscalchi 2003) to infinite strategic form games with incomplete information. The most important feature of the $\Delta$-rationalizability is that there is no specified epistemic type space \`{a} la Harsanyi. However, we can impose a...
Persistent link: https://www.econbiz.de/10005702725