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Technology Choice and Incentives under Relative Performance Schemes

Kräkel, Matthias; Schöttner, Anja - 2010

We identify a new problem that may arise when heterogeneous workers are motivated by relative performance schemes: If workers’ abilities and the production technology are complements, the firm may prefer not to adopt a more advanced technology even though this technology would costlessly...

Persistent link: https://www.econbiz.de/10010271450

Optimal Monetary Policy in an Interdependent World

Evers, Michael P. - 2007

In the literature on international monetary policy, the paradigm is that gains from coordination are fairly small. Monetary policy is conducted to stabilize macroeconomic fluctuations and gains from policy coordination arise from preventing national monetary authorities from strategically...

Persistent link: https://www.econbiz.de/10010273787

Optimum Policy Domains in an Interdependent World

Evers, Michael P. - 2007

In this paper, I argue that international policy coordination requires to include both monetary as well as fiscal policy because both sides include policy instruments that allow the strategic manipulation of the country's terms of trade. Hence, the coordination of one part of national...

Persistent link: https://www.econbiz.de/10010273788

The damage from clean floats: From an anti-inflationary monetary policy

Pope, Robin; Selten, Reinhard; Kaiser, Johannes; Kube, … - 2007

The paper traces the dangers in the closed economy perspective of a monetary policy focused on a domestic inflation goal under a clean float. Field evidence of the damage wrought from this perspective is reinforced by that from a laboratory experiment. The laboratory experiment avoids...

Persistent link: https://www.econbiz.de/10010274161

Prominent Numbers, Indices and Ratios in Exchange Rate Determination and Financial Crashes: in Economists’ Models, in the Field and in the Laboratory

Pope, Robin; Selten, Reinhard; Kube, Sebastian; von … - 2009

The prior paper in this sequel, Pope (2009) introduced the concept of a nominalist heuristic, defined as a focus on prominent numbers, indices or ratios. In this paper the concept is used to show three things in how scientists and practitioners analyse and evaluate to decide (conclude). First,...

Persistent link: https://www.econbiz.de/10010274186

Ambiguity and Social Interaction

Eichberger, Jürgen; Kelsey, David H.; Schipper, Burkhard C. - 2003

We examine the impact of ambiguity on economic behaviour. We present a relatively non-technical account of ambiguity and show how it may be applied in economics. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the effect of increasing...

Persistent link: https://www.econbiz.de/10010274362

Optimal Auction Design and Irrelevance of Private Information

Mylovanov, Tymofiy; Tröger, Thomas - 2008

We consider the problem of mechanism design by a principal who has private information. We point out a simple condition … under which the privacy of the principal's information is irrelevant in the sense that the mechanism implemented by the … principal coincides with the mechanism that would be optimal if the principal's information were publicly known. This condition …

Persistent link: https://www.econbiz.de/10010275922

Learning to Like What You Have: Explaining the Endowment Effect

Huck, Steffen; Kirchsteiger, Georg; Oechssler, Jörg - 2003

The endowment effect describes the fact that people demand much more to give up an object than they are willing to spend to acquire it. The existence of this effect has been documented in numerous experiments. We attempt to explain this effect by showing that evolution favors individuals whose...

Persistent link: https://www.econbiz.de/10010276089

Imitators and Optimizers in Cournot Oligopoly

Schipper, Burkhard C. - 2002

We present a formal model of symmetric n-firm Cournot oligopoly with a heterogeneous population of profit optimizers and imitators. Imitators mimic the output decision of the most successful firms of the previous round a la Vega-Redondo (1997). Optimizers play myopic best response to the...

Persistent link: https://www.econbiz.de/10010276582

Technological Change in Resource Extraction and Endogenous Growth

Stuermer, Martin; Schwerhoff, Gregor - 2013

We add an extractive sector to an endogenous growth model of expanding varieties and directed technological change. Extractive firms reduce the stock of non-renewable resources through extraction, but also increase the stock through R&D investment in extraction technology. Our model replicates...

Persistent link: https://www.econbiz.de/10014151039