Showing 1 - 10 of 22
In many cases consumers cannot observe firms’ investment in quality or safety, but have only beliefs on the average quality of the industry. In addition, the outcome of the collective investment game of the firms may be stochastic since firms cannot control perfectly the technology or external...
Persistent link: https://www.econbiz.de/10010833913
The paper studies the effect of scale economies on the optimal capacity adjustment of a mutiplant firm. It is shown that with increasing economies of scale plants are ranked in decreasing order, after which the optimal choice is to scrap the largest one. On the contrary, if there are decreasing...
Persistent link: https://www.econbiz.de/10005570320
A firm can merge with one of n potential partners. The owner of each firm has private information about both his firm’s stand-alone value and a component of the synergies that would be realized by the merger involving his firm. We characterize incentive-efficient mechanisms in two cases....
Persistent link: https://www.econbiz.de/10005423148
Many environmental-policy problems are characterized by complexity and uncertainty. Government’s choice concerning these policies commonly relies on information provided by a bureaucracy. Environmental bureaucrats often have a political motivation of their own, so they might be tempted to...
Persistent link: https://www.econbiz.de/10010813781
The literature on public goods has shown that efficient outcomes are impossible if participation constraints have to be respected. This paper addresses the question whether they should be imposed. It asks under what conditions efficiency considerations justify that individuals are forced to pay...
Persistent link: https://www.econbiz.de/10008502099
The seller of N distinct objects is uncertain about the buyer’s valuation for those objects. The seller’s problem, to maximize expected revenue, consists of maximizing a linear functional over a convex set of mechanisms. A solution to the seller’s problem can always be found in an extreme...
Persistent link: https://www.econbiz.de/10008489607
This paper analyses whether different emissions trading regimes provide different incentives to participate in a … designing the emission trading regime, it is possible to enhance the incentives to participate in a climate agreement. Therefore …
Persistent link: https://www.econbiz.de/10005423151
since the year 2000, as a result of a change in the incentives for both private agents and bureaucrats. …
Persistent link: https://www.econbiz.de/10005423175
crucial to prioritise participation incentives for all countries, especially those without explicit or with insufficient … abatement targets. This paper offers a bottom-up game-theoretic perspective on participation incentives. Rather than focusing on … issue linkage, transfers or burden sharing as tools to enhance the incentives to participate in a climate agreement, this …
Persistent link: https://www.econbiz.de/10005423177
, where free-riding incentives are strong. Is a minimum participation rule a way to offset these free-riding incentives? Why …
Persistent link: https://www.econbiz.de/10005423196