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Simple sequencing problems with interdependent costs

Hain, Roland; Mitra, Manipushpak - 2001

In this paper we analyze sequencing situations under incomplete information where agents have interdependent costs. We …

Persistent link: https://www.econbiz.de/10011538943

Optimal contracting with verifiable ex post signals

Kessler, Anke S.; Lülfesmann, Christoph; Schmitz, … - 2000

We study an adverse selection problem in which information that is imperfectly correlated with the agent's type becomes … bad states may be strengthened. Hence, ex post information can reduce efficiency. In contrast, if the agent's utility is ….g., whether the agent is in a "buyer" or "seller" position. In both cases, however, additional information need not improve the …

Persistent link: https://www.econbiz.de/10011538996

Holdups, quality choice, and the Achilles' heel in government contracting

Bös, Dieter; Lülfesmann, Christoph - 2001

This paper investigates a procurement relationship between a welfare-oriented government and a private supplier. The agents face several versions of the trading good which differ in quality and production costs, and the differences between those items are undescribable ex ante. In presence of...

Persistent link: https://www.econbiz.de/10011539057

On the dynamic foundation of evolutionary stability in continuous models

Oechssler, Joerg; Riedel, Frank - 2000

We show in this paper that none of the existing static evolutionary stability concepts (ESS, CSS, uninvadability, NIS) is sufficient to guarantee dynamic stability in the weak topology with respect to standard evolutionary dynamics if the strategy space is continuous. We propose a new concept,...

Persistent link: https://www.econbiz.de/10011539103

Economic growth and social poverty : the evolution of social participation

Antoci, Angelo; Sacco, Pier Luigi; Vanin, Paolo - 2001

We develop an evolutionary model of growth in which agents choose how to allocate their time between private and social activities. We argue that a shift from social to private activities may foster market-based growth, but also generate social poverty. Within a formal framework that merges a...

Persistent link: https://www.econbiz.de/10011539109

Learning direction theory and the winners curse

Selten, Reinhard; Abbink, Klaus; Cox, Ricarda - 2001

We report an experiment on a decision task by SAMUELSON and BAZERMAN (1985). Subjects submit a bid for an item with an unknown value. A winner s curse phenomenon arises when subjects bid too high and make losses. Learning direction theory can account for this. However, other influences on...

Persistent link: https://www.econbiz.de/10011539130

Dynamic efficiency and Pareto Optimality in a stochastic OLG model with production and social security

Barbie, Martin; Hagedorn, Marcus; Kaul, Ashok - 2000 - Revised, June 2000

We analyze the interaction between risk sharing and capital accumulation in a stochastic OLG model with production. We give a complete characterization of interim Pareto optimality. Our characterization also subsumes equilibria with a PAYG social security system. In a competitive equilibrium...

Persistent link: https://www.econbiz.de/10011539178

On the foundations of the property rights theory of the firm : cooperative investments and message-dependent contracts

Roider, Andreas - 2000 - This version: October 2000

The property-rights theory assumes that trade is non-contractible ex-ante and focusses exclusively on the allocation of property-rights. We derive foundations for this focus on property-rights by identifying scenarios where only one of the simple ownership structures is optimal even though trade...

Persistent link: https://www.econbiz.de/10011539180

Representative versus direct democracy : the role of informational asymmetries

Kessler, Anke S. - 2000 - Revised version: November 2000

The paper studies the relative merits of direct and representative legislation in a setting where voters are uncertain both with respect to the likely consequences of different policies and with respect to the political preferences of their fellow citizens. Under representative legislation, the...

Persistent link: https://www.econbiz.de/10011539190

The pricing of derivatives on assets with quadratic volatility

Zühlsdorff, Christian - 2002

The basic model of financial economics is the Samuelson model of geometric Brownian motion because of the celebrated Black-Scholes formula for pricing the call option. The asset's volatility is a linear function of the asset value and the model garantees positive asset prices. In this paper it...

Persistent link: https://www.econbiz.de/10011539634