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Optimal Litigation Strategies with Signaling and Screening

Choné, Philippe; Linnemer, Laurent - 2021

This paper examines the strategic effects of case preparation in litigation. Specifically, it shows how the pretrial efforts incurred by one party may alter its adversary's incentives to settle. We build a sequential game with one-sided asymmetric information where the informed party first...

Persistent link: https://www.econbiz.de/10013316509

Dissipative Advertising Signals Quality even without Repeat Purchases

Linnemer, Laurent - 2008

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …;D efforts and therefore are both uncertain. I characterize the optimal separating marketing mix (price and advertising) when …), advertising appears to be necessary together with price to signal quality. Equilibrium profits depend on cost but not on quality …

Persistent link: https://www.econbiz.de/10012771800

As Easy as ABC? Multidimensional Screening in Public Finance

Renes, Sander - 2017

We characterize the second-best allocation in a Mirrleesian optimal tax model where agents differ in multiple dimensions and the planner can tax multiple goods non-linearly. We develop a new method that allows us to solve the partial differential equations that describe the optimum regardless of...

Persistent link: https://www.econbiz.de/10012962921

Donating Time or Money : Are They Substitutes or Complements?

Hartmann, Bastian - 2012

Decisions to donate time or money for charitable purposes are typically seen as make-or-buy decisions, implying that there should be a clear distinction between individuals engaging in one of these two forms of giving and that this distinction should be somehow linked to opportunity costs. But...

Persistent link: https://www.econbiz.de/10013105136

Ex Post Information Rents in Sequential Screening

Krahmer, Daniel - 2014

We study ex post information rents in sequential screening models where the agent receives private ex ante and ex post information. The principal has to pay ex post information rents for preventing the agent to coordinate lies about his ex ante and ex post information. When the agent's ex ante...

Persistent link: https://www.econbiz.de/10013054499

Signaling versus Auditing

Bester, Helmut - 2019

We analyze a competitive labor market in which workers signal their productivities through education à la Spence (1973), and firms have the option of auditing to learn workers' productivities. Audits are costly and non–contractible. We characterize the trade–offs between signaling by...

Persistent link: https://www.econbiz.de/10012898039

Until Taxes Do Us Part : Tax Penalties or Bonuses and the Marriage Decision

Barigozzi, Francesca - 2018

The tax regimes applied to couples in many countries including the US, France, and Germany imply either a marriage penalty or a marriage bonus. We study how they affect the decision to get married by considering two potential spouses who play a marriage proposal game. At the end of the game they...

Persistent link: https://www.econbiz.de/10012930603

Portfolio Sales and Signaling

Bougheas, Spiros P. - 2017

A common practice of banks has been to pool assets of different qualities and then sell a fraction of the newly created portfolios to investors. We extend the signaling model for single sales of risky assets to portfolio sales. We identify conditions under which signaling at the portfolio level...

Persistent link: https://www.econbiz.de/10012960474

A Signaling Model of University Selection

Anic, Ivan; Bozin, Vladimir; Urosevic, Branko - 2021

We propose a signaling model of student enrollment dynamics based on probabilities of completion of studies, under different rationality assumptions. There are two types of students and two schools. School of graduation serves as a signal of student productivity to prospective employers. The...

Persistent link: https://www.econbiz.de/10013315508

Who Should Pay for Certification?

Stahl, Konrad; Strausz, Roland - 2021

-induced certification acts as an inspection device, seller-induced certification as a signalling device. Seller-induced certification …

Persistent link: https://www.econbiz.de/10013316064