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We consider a market-for-lemons model where the seller is a price setter, and, in addition to observing the price, the buyer receives a private noisy signal of the product's quality, such as when a prospective buyer looks at a car or house for sale, or when an employer interviews a job...
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. -- decision theory ; discrete choice ; uncertainty ; monotonicity … observes more or less precise signals that are positively correlated with these utilities. In addition, the decision-maker may … study or the hiring of expertise. We here develop a model of such decision problems. We begin by showing that a version of …
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This paper deals with the question how to model health effects after the cessation of a randomised controlled trial (RCT). Using clinical trial data on severe congestive heart failure patients we illustrate how survival beyond the cessation of a RCT can be predicted based on parametric survival...
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laboratory experiment. Our findings support the main comparative-static predictions of the model but also suggest that, when …
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