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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
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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
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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
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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 <I>Economic Theory</I> (2002). Vol. 20, issue 3, pages 579-601.<P> 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...</p></i>
Persistent link: https://www.econbiz.de/10011256254
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Credit Rationing Effects of Credit Value-at-Risk
Slijkerman, Jan Frederik; Smant, David J.C.; Vries, … - Tinbergen Instituut - 2004
asymmetric information the banks face the risk of adverse selection. Credit Value-at-Risk (CVaR) regulation counters the problem … distorts the operation of credit markets. We show that a binding CVaR constraint introduces credit rationing and lowers social …
Persistent link: https://www.econbiz.de/10011257219
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Dynamic Insurance and Adverse Selection
Janssen, Maarten C.W.; Karamychev, Vladimir A. - Tinbergen Instituut - 2001
This discussion paper led to a publication in the <I>Journal of Risk and Insurance</I>. Vol. 72(1), pages 45-59.<P> 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...</p></i>
Persistent link: https://www.econbiz.de/10011257433
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Capital Structure and the Redeployability of Tangible Assets
Campello, Murillo; Giambona, Erasmo - Tinbergen Instituut - 2011
). Consistent with a credit supply-side view of capital structure, we find that assetredeployability is a particularly important … redeployability facilitates borrowingthe most during periods of tight credit. Our work contributes new evidence to capital structure … through which credit frictions affect firm financial decisions. …
Persistent link: https://www.econbiz.de/10011255648
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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
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Cost Reducing Investment, Competition and Industry Dynamics
Petrakis, Emmanuel; Roy, Santanu - Tinbergen Instituut - 1998
investment in firm-specific cost reduction. They earn negative net profit in early periods, compensated later by strictlypositive …
Persistent link: https://www.econbiz.de/10011255543
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Markov-Perfect Nash Equilibria in Models with a Single Capital Stock
Dockner, Engelbert J.; Wagener, Florian O.O. - Tinbergen Instituut - 2006
investment in a public capital stock, and the inter-temporal consumption of a reproductive asset. …
Persistent link: https://www.econbiz.de/10011255863