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Inefficient Liquidity Provision
Geanakoplos, John - 2017
We prove that in competitive market economies with no insurance for idiosyncratic risks, agents will always overinvest in illiquid long term assets and underinvest in short term liquid assets. We take as our setting the seminal model of Diamond and Dybvig (1983), who first posed the question in...
Persistent link: https://www.econbiz.de/10012962509
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Premuneration Values and Investments in Matching Markets
Mailath, George J. - 2015
affects investment efficiency …
Persistent link: https://www.econbiz.de/10013014265
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Efficient Recommender Systems
Bergemann, Dirk; Ozmen, Deran - 2006
We study the efficient allocation of buyers in the presence of recommender systems. A recommender system affects the market in two ways: (i) it creates value by reducing product uncertainty for the customers and hence (ii) its recommendations can be offered as add-ons, which generates...
Persistent link: https://www.econbiz.de/10014057016
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Economists as Worldly Philosophers
Shiller, Robert J. - 2011
While leading figures in the early history of economics conceived of it as inseparable from philosophy and other humanities, there has been movement, especially in recent decades, towards its becoming an essentially technical field with narrowly specialized areas of inquiry. Certainly,...
Persistent link: https://www.econbiz.de/10013128630
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Identification in a Class of Nonparametric Simultaneous Equations Models
Berry, Steven - 2011
We consider identification in a class of nonparametric simultaneous equations models introduced by Matzkin (2008). These models combine standard exclusion restrictions with a requirement that each structural error enter through a “residual index” function. We provide constructive proofs of...
Persistent link: https://www.econbiz.de/10013128672
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Cost Innovation : Schumpeter and Equilibrium - Part 1: Robinson Crusoe
Shubik, Martin - 2011
Modifying a parallel dynamic programming approach to a simple deterministic economy, we consider the effect of an innovation in the means of production. The success of the innovation is assumed to depend on the availability of financing, locus of financial control, the amount of resources...
Persistent link: https://www.econbiz.de/10013129010
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Folklore Theorems, Implicit Maps and New Unit Root Limit Theory
Phillips, Peter C. B. - 2011
theory relies on a sequence-based delta method in the stationary case and a sequence-based implicit continuous mapping … theorem in unit root and local to unity cases. The new limit theory shows that the IIE achieves much more than bias correction …. It changes the limit theory of the maximum likelihood estimator (MLE) when the autoregressive coefficient is in the …
Persistent link: https://www.econbiz.de/10013131586
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Default Penalty as a Disciplinary and Selection Mechanism in Presence of Multiple Equilibria
Huber, Juergen - 2011
. The theory and evidence together reinforce the idea that accounting, bankruptcy and possibly other aspects of social …
Persistent link: https://www.econbiz.de/10013134301
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Managing Strategic Buyers
Horner, Johannes - 2010
We consider the problem of a monopolist who must sell her inventory before some deadline, facing n buyers with independent private values. The monopolist posts prices but has no commitment power. The seller faces a basic trade-off between imperfect price discrimination and maintaining an...
Persistent link: https://www.econbiz.de/10013138385
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Career Concerns with Coarse Information
Bonatti, Alessandro - 2012
This paper develops a model of career concerns. The worker's skill is revealed through output, wage is based on expected output, and so on assessed ability. Specifically, effort increases the probability that a skilled worker achieves a one-time breakthrough. Effort levels at different times are...
Persistent link: https://www.econbiz.de/10013113684