Similar Search Results

Inverse Adverse Selection: The Market for Gems

Dari-Mattiacci, Giuseppe; Onderstal, Sander; Parisi, … - Tinbergen Instituut - 2011

This paper studies markets plagued with asymmetric information on the quality of traded goods. In Akerlof's setting, sellers are better informed than buyers. In contrast, we examine cases where buyers are better informed than sellers. This creates an inverse adverse selection problem: The market...

Persistent link: https://www.econbiz.de/10011256127

Credit Rationing Effects of Credit Value-at-Risk

Slijkerman, Jan Frederik; Smant, David J.C.; Vries, … - Tinbergen Instituut - 2004

Banks provide risky loans to firms which have superior information regarding the quality of their projects. Due to asymmetric information the banks face the risk of adverse selection. Credit Value-at-Risk (CVaR) regulation counters the problem of low quality, i.e. high risk, loans and therefore...

Persistent link: https://www.econbiz.de/10011257219

Dynamic Insurance and Adverse Selection

Janssen, Maarten C.W.; Karamychev, Vladimir A. - Tinbergen Instituut - 2001

This discussion paper led to a publication in the Journal of Risk and Insurance. Vol. 72(1), pages 45-59. We take a dynamic perspective on insurance markets under adverseselection and study a generalized Rothschildand Stiglitz model where agents may differ with respect to theaccidental...

Persistent link: https://www.econbiz.de/10011257433

Competition for a Prize

Noll, Rob van der - Tinbergen Instituut - 2006

I present a model in which individuals compete for a prize by choosing to apply or not. Abilities are private information and in attempt to select the best candidate, the committee compares applicants with an imperfect technology. The choice of application cost, size of the prize and use of...

Persistent link: https://www.econbiz.de/10011255649

Continuous Time Trading in Markets with Adverse Selection

Janssen, Maarten C.W.; Karamychev, Vladimir - Tinbergen Instituut - 2000

We investigate the nature of the adverse selection problem in a market for adurable goodwhere trading and entry of new buyers and sellers takes place in continuoustime. In thecontinuous time model equilibria with properties that are qualitativelydifferent from thestatic equilibria, emerge....

Persistent link: https://www.econbiz.de/10011255809

Cycles and Multiple Equilibria in the Market for Durable Lemons

Janssen, Maarten C.W.; Karamychev, Vladimir - Tinbergen Instituut - 2000

This discussion paper resulted in an article in Economic Theory (2002). Vol. 20, issue 3, pages 579-601. We investigate the nature of market failure in a dynamic version of Akerlof (1970) where identical cohorts of a durable good enter the market over time. In the dynamic model, equilibria with...

Persistent link: https://www.econbiz.de/10011256254

Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure

Boot, Arnoud W.A.; Thakor, Anjan V. - Tinbergen Instituut - 2003

In this paper we introduce flexibility as an economic concept and apply it to the firm’ssecurity issuance decision and capital structure choice. Flexibility is the ability to makedecisions that one thinks are best even when others disagree. The firm’s management valuesflexibility because it...

Persistent link: https://www.econbiz.de/10011242147

Capital Structure and the Redeployability of Tangible Assets

Campello, Murillo; Giambona, Erasmo - Tinbergen Instituut - 2011

We characterize the relation between corporate asset structure and capital structure by exploitingvariation in the salability of tangible assets. Theory suggests that tangibility increases borrowingcapacity because it allows creditors to more easily repossess a firm’s assets. Tangible assets,...

Persistent link: https://www.econbiz.de/10011255648

Democracy and Regulation: The Effects of Electoral Competition on Infrastructure Investments

Schram, Arthur; Ule, Aljaz - Tinbergen Instituut - 2013

This paper investigates infrastructure investment in markets where regulation is subject to varying degrees of … on investment we construct a multi-period game between a service provider, consumers with voting rights and elected …. Before an election the service provider chooses whether to increase its capacity. Investment is irreversible and profitable …

Persistent link: https://www.econbiz.de/10011257092

The Value of Human and Social Capital Investments for the Business Performance of Start-ups

Bosma, Niels; Praag, Mirjam van; Thurik, Roy; Wit, Gerrit de - Tinbergen Instituut - 2002

We investigate the manifold posed question: To what extent does investment in human and social capital, besides the …

Persistent link: https://www.econbiz.de/10011257158