Similar Search Results

The revelation and delegation principles in common agency games

Martimort, David; Stole, Lars A. - 2001

In the context of common agency adverse-selection games weillustrate that the revelation principle cannot be applied to studyequilibria of the multi-principal games. We then demonstrate thatan extension of the taxation principle what we term the delegation principle can be used to characterize...

Persistent link: https://www.econbiz.de/10011400675

Loans, insurance and failures in the credit market for students

Del Rey, Elena; Verheyden, Bertrand - 2011

students who have private information on their ability to learn and can decide to default on debt. We show that the combination … of ex-post moral hazard and adverse selection produces credit market rationing when default penalties are low. When … default penalties increase, the level of student risk aversion proves crucial in determining the market outcome. If risk …

Persistent link: https://www.econbiz.de/10009012186

Advantageous selection without moral hazard (with an application to life care annuities)

De Donder, Philippe; Leroux, Marie-Louise; Salanié, … - 2022

Advantageous (or propitious) selection occurs when an increase in the premium of an insurance contract induces high-cost agents to quit, thereby reducing the average cost among remaining buyers. Hemenway (1990) and many subsequent contributions motivate its advent by differences in risk-aversion...

Persistent link: https://www.econbiz.de/10013205047

Market transparency, adverse selection, and moral hazard

Klein, Tobias J.; Lambertz, Christian; Stahl, Konrad - 2013

We study the effects of improvements in market transparency on eBay on seller exit and continuing sellers' behavior. An improvement in market transparency by reducing strategic bias in buyer ratings led to a significant increase in buyer valuation especially of sellers rated poorly prior to the...

Persistent link: https://www.econbiz.de/10010227243

How to share it out : the value of information in teams

Gershkov, Alex; Li, Jianpei; Schweinzer, Paul - 2014

We study the role of information exchange, leadership and coordination in team or partnership structures. For this purpose, we view individuals jointly engaging in productive processes-a "team"-as endowed with individual and privately held information on the joint production process. Once...

Persistent link: https://www.econbiz.de/10010405163

Mechanism design with moral hazard

Kwon, Suehyun - 2017

This paper studies dynamic mechanism design in the presence of moral hazard. Revelation principle extends to models with moral hazard for both full commitment and limited commitment, but I also identify environments in which the principal doesn't benefit from eliciting agents' private...

Persistent link: https://www.econbiz.de/10011717264

Adverse selection and moral hazard with multidimensional types

Kwon, Suehyun - 2017 - First draft: March 1, 2017

This paper studies a contracting problem where agents' cost of actions is private information. With two actions, this leads to a two-dimensional screening problem with moral hazard. There is a natural one-dimensional ordering of types when there is both adverse selection and moral hazard....

Persistent link: https://www.econbiz.de/10011718471

Should UI benefits really fall over time?

Hassler, John; Rodríguez Mora, José Vicente - 2002

The issue of whether unemployment benefits should increase or decrease over the unemployment spell is analyzed in an analytically tractable model allowing moral hazard, adverse selection and hidden savings. Analytical results show that when the search productivity of unemployed is constant over...

Persistent link: https://www.econbiz.de/10011513998

An equilibrium theory of nominal exchange rates

Hagedorn, Marcus - 2021

This paper proposes an equilibrium theory of nominal exchange rates, which offers a new perspective on various issues in open economy macroeconomics. The nominal exchange rate and portfolio choices are jointly determined in equilibrium, thus providing a new approach to overcoming the...

Persistent link: https://www.econbiz.de/10012619299

Regulation and internet access in Germany

Reutter, Michael - 2001

We explain the recent events in the German market for online access using a model of a regulated monopoly renting phone lines to retailers. Retailers offer either a linear or a flat tariff to consumers. Consumer heterogeneity leads to adverse selectiion. We show why market entry for flatrate...

Persistent link: https://www.econbiz.de/10011398800

1
2
3
4
5
6
7
8
9
10
Next
Last