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and 30% to education signaling workers' ability …
Persistent link: https://www.econbiz.de/10012841583
We analyze optimal redistribution in the presence of labor market signaling where innate productive ability is not only … unobserved by the government, but also by prospective employers. Signaling in both one and two dimensions is considered, where in … redistributing income and affecting signalling incentives is analyzed, as well as extended tax systems that combine income taxation …
Persistent link: https://www.econbiz.de/10013217555
What happens when employers would like to screen their employees but only observe a subset of output? We specify a model in which heterogeneous employees respond by producing more of the observed output at the expense of the unobserved output. Though this substitution distorts output in the...
Persistent link: https://www.econbiz.de/10014079145
We study a symmetric private value auction with signaling, in which the auction outcome is used by an outside observer … clock, affects signaling incentives differently in both auction formats, and thereby also the bidders’ incentives to overbid …
Persistent link: https://www.econbiz.de/10013315051
We study the optimal entry fee in a symmetric private value first-price auction with signaling, in which the … auction has a unique fully separating equilibrium bidding function. When the bidders’ sensibility for the signaling concern is …
Persistent link: https://www.econbiz.de/10014077334
introduce and determine a rational signaling equilibrium which adds two domination-based conditions to the belief structure of a …
Persistent link: https://www.econbiz.de/10013300864
-induced certification acts as an inspection device, seller-induced certification as a signalling device. Seller-induced certification …
Persistent link: https://www.econbiz.de/10010274805
This paper develops an algorithm that enables to solve macroeconomic models with Rotemberg pricing and imperfect common knowledge. Under the concept of imperfect common knowledge, Rotemberg pricing requires the solution algorithm to take prices explicitly into account. The state space includes...
Persistent link: https://www.econbiz.de/10012841148
Belief elicitation is central to inference on economic decision making. The recently introduced Binarized Scoring Rule (BSR) is heralded for its robustness to individuals holding risk averse preferences and for its superior performance when eliciting beliefs. Consequently, the BSR has become the...
Persistent link: https://www.econbiz.de/10012842970
We propose that multinational firms learn about their profitability in a particular market by observing their performance in nearby markets. We first develop a model of firm expectations formation with noisy signals from multiple markets and derive predictions on expectations formation and...
Persistent link: https://www.econbiz.de/10012825991