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Advances in economics and econometrics ; Vol. 2

Blundell, Richard W. (contributor); … - 2006 - 1. publ.

Persistent link: https://www.econbiz.de/10003423706

Lewis, Tracy; Dai, Chifeng - Econometric Society - 2004

Buyers frequently delegate purchase decisions to sellers who are better informed about supply options and the cost of service. This paper analyzes how buyers optimally contract with sellers who vary in their expertise at prescribing service. We show that the most expert suppliers offer the...

Persistent link: https://www.econbiz.de/10005130176

Precautionary Bidding in a Dynamic Model of Discrete Noncooperative Entry Deterrence

Varma, Gopal Das - Econometric Society - 2004

We consider competitive bidding for a business license, via an open ascending-price auction, between two symmetric …

Persistent link: https://www.econbiz.de/10005342186

The Effect of Cross Ownership on Competition in Auction Markets

Waehrer, Keith; Greenlee, Patrick - Econometric Society - 2004

We consider a model where bidders in an auction own passive partial claims over their rivals’ auction profits. While …-value auction, we find that such cross ownership has an effect similar to reducing the number of bidders while holding constant the … distribution of the highest value in the auction. A similar decrease in competition occurs in independent private-value second …

Persistent link: https://www.econbiz.de/10005329010

Institutions, Credit rationing and housing development

Garcia, Fernando; Brollo, Fernanda - Econometric Society - 2004

One of the basic principles that allow a smooth operation of the markets is the equilibrium between supply and demand. According to this principle, when demand exceeds supply, the price mechanism will try to bring the system back into equilibrium. When this thinking is applied to the housing...

Persistent link: https://www.econbiz.de/10005063549

The Effect of Outside Options on Bargaining Under Asymmetric Information

Wickelgren, Abraham L. - Econometric Society - 2004

Admati and Perry (1987) derive the equilibrium in a bargaining game between a seller and buyer when the buyer's valuation is private information. They show that, for some parameter values, trade occurs at the Rubinstein (1982) prices given the buyer's true valuation (pl if the buyer has a low...

Persistent link: https://www.econbiz.de/10005063605

Why Issue Mandatory Convertibles? Theory and Empirical Evidence.

Yan, An; Nandy, Debarshi; Chemmanur, Thomas - Econometric Society - 2004

Abstract Mandatory convertibles, which are equity-linked hybrid securities that automatically convert to common stock on a pre-specified date, have become an increasingly popular means of raising capital in recent years (about $20 billion worth issued in 2001 alone). This paper presents the...

Persistent link: https://www.econbiz.de/10005063613

How often should you open the door? Optimal monitoring to screen heterogeneous agents

Muehlheusser, Gerd; Ichino, Andrea - Econometric Society - 2004

This paper shows that monitoring too much a partner in the initial phase of a relationship may not be optimal if the goal is to determine his loyalty to the match and if the cost of ending the relationship increases over time. The intuition is simple: by monitoring too much we learn less on how...

Persistent link: https://www.econbiz.de/10005063690

Punitive Damage Awards, Frivolous Lawsuits and Firmâ€™s Level of Care

Nikitin, Maxim; Landeo, Claudia M. - Econometric Society - 2004

Punitive damage awards have been widely criticized for generating a plaintiffâ€™s windfall (i.e., a payment in excess of the costs of pursuing the punitive claim), which promotes unnecessary litigation, the escalation of liability insurance premiums and over-deterrence. In an attempt to...

Persistent link: https://www.econbiz.de/10005063694

Deterrence, Lawsuits and Litigation Outcomes under Agency Problems and Court Errors

Landeo, Claudia M.; Nikitin, Maxim - Econometric Society - 2004

Punitive damage awards have been widely criticized for their unpredictability (2004 Economic Report of the President) and for generating a plaintiffâ€™s windfall (i.e., a payment in excess of the costs of pursuing the punitive claim), which promotes unnecessary litigation (Dodson, 2000),...

Persistent link: https://www.econbiz.de/10005699597