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Information costs, networks and intermediation in international trade

Petropoulou, Dimitra - London School of Economics (LSE) - 2008

costs on endogenous network building and matching by information intermediaries. The framework innovates by examining the … matching technologies available to traders. Moreover, convexity in network-building costs is necessary for both direct and …

Persistent link: https://www.econbiz.de/10010745054

Competing for contacts: network competition, trade intermediation and fragmented duopoly

Petropoulou, Dimitra - London School of Economics (LSE) - 2008

intermediaries who compete in commission rates and network size, giving rise to a fragmented duopoly market structure. The model … suggests that network competition between information intermediaries has a distinctive market structure, where intermediaries … are monopolistic service providers to some contacts but duopolists over contacts they share in their network overlap. the …

Persistent link: https://www.econbiz.de/10010746133

Capital structure, investment, and fire sales

Gale, Douglas; Gottardi, Piero - London School of Economics (LSE) - 2014

We study a dynamic general equilibrium model in which firms choose their investment level and their capital structure, trading off the tax advantages of debt against the risk of costly default. The costs of bankruptcy are endogenously determined, as bankrupt firms are forced to liquidate their...

Persistent link: https://www.econbiz.de/10011170093

Greek fiscal crisis and repercussions for the property market

Vlamis, Prodromos - London School of Economics (LSE) - 2013

The aim of the paper is to present a review of the fiscal imbalances and debt crisis in Greece and identify the possible links with the recent developments in the Greek property market. We follow a non-technical approach to discuss a number of factors that have contributed to the fiscal crisis...

Persistent link: https://www.econbiz.de/10011071100

Estimating the rational expectations model of speculative storage : a Monte Carlo comparison of three simulation estimators

Michaelides, Alexander; Ng, Serena - London School of Economics (LSE) - 2000

The non-negativity constraint on inventories imposed on the rational expectations theory of speculative storage implies that the conditional mean and variance of commodity prices are non-linear in lagged prices and have a kink at a threshold point. In this paper, the structural parameters of...

Persistent link: https://www.econbiz.de/10010928703

Hayek on the wisdom of prices: a reassessment

Bronk, Richard - London School of Economics (LSE) - 2013

This paper re-examines Hayek’s insights into the problem of knowledge in markets, and argues that his analysis remains pertinent but has serious flaws. His central thesis—that the market price system is essential for communicating information and coordinating transactions wherever knowledge...

Persistent link: https://www.econbiz.de/10011071336

Financial contagion through capital connections: a model of the origin and spread of bank panics

Dasgupta, Amil - London School of Economics (LSE) - 2002

Financial contagion is modeled as an equilibrium phenomenon in a dynamic setting with incomplete information and multiple banks. The equilibrium probability of bank failure is uniquely determined. We explore how the cross holding of deposits motivated by imperfectly correlated regional liquidity...

Persistent link: https://www.econbiz.de/10010884582

No escape? The co-ordination problem in heritage preservation

Ahlfeldt, Gabriel M.; Holman, Nancy - London School of Economics (LSE) - 2013

Conservation areas (CAs) are among the most restrictive English planning policies. Designation implies a significant limitation of owners’ control over the shape and appearance of their properties. The policy, however, can also be argued to solve a sort of ‘prisoners’ dilemma’, in which...

Persistent link: https://www.econbiz.de/10010745091

Modelling the economic interaction of agents with diverse abilities to recognise equilibrium patterns

Piccione, Michele; Rubinstein, Ariel - London School of Economics (LSE) - 2002

We model differences among agents in their ability to recognise temporal patterns of prices. Using the concept of DeBruijin sequences in two dynamic models of markets, we demonstrate the existence of equilibria in which prices fluctuate in a pattern that is independent of the fundamentals and...

Persistent link: https://www.econbiz.de/10010745837

Book review: beyond individual choice: teams and frames in Game Theory, by Michael Bacharach, edited by Natalie Gold and Robert Sugden

Rothe, Jorn - London School of Economics (LSE) - 2007

Persistent link: https://www.econbiz.de/10010746552