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Subjective evaluation versus public information
Bester, Helmut; Münster, Johannes - 2013
This paper studies a principal-agent relation in which the principal's private information about the agent's effort choice is more accurate than a noisy public performance measure. For some contingencies the optimal contract has to specify ex post inefficiencies in the form of inefficient...
Persistent link: https://www.econbiz.de/10009752336
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Credence goods, costly diagnosis, and subjective evaluation
Bester, Helmut; Dahm, Matthias - 2014
We study contracting between a consumer and an expert. The expert can invest in diagnosis to obtain a noisy signal about whether a low-cost service is sufficient or whether a high-cost treatment is required to solve the consumerś problem. This involves moral hazard because diagnosis effort and...
Persistent link: https://www.econbiz.de/10010429934
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Optimal procurement of a credence good under limited liability
Bester, Helmut; Yaofu, Ouyang - 2017
This paper analyzes the optimal contract for a consumer to procure a credence good from an expert when (i) the expert might misrepresent his private information about the consumer’s need, (ii) the expert might not choose the requested service since his choice of treatment is non-observable,...
Persistent link: https://www.econbiz.de/10011781931
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Deterministic versus stochastic contracts in a dynamic principal-agent model
Mettral, Thomas - 2018
I show that deterministic dynamic contracts between a principal and an agent are always at least as profitable to the principal as stochastic ones, if the so-called first-order approach in dynamic mechanism design is satisfied. The principal commits, while the agent's type evolution follows a...
Persistent link: https://www.econbiz.de/10011901976
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Can a bonus overcome moral hazard? : an experiment on voluntary payments, competition, and reputation in markets for expert services
Angelova, Vera; Regner, Tobias - 2017
Interactions between players with private information and opposed interests are often prone to bad advice and inefficient outcomes, e.g. markets for financial or health care services. In a deception game we investigate experimentally which factors could improve advice quality. Besides advisor...
Persistent link: https://www.econbiz.de/10011697162
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A theory of crowdfunding : a mechanism design approach with demand uncertainty and moral hazard
Strausz, Roland - 2017
Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under …
Persistent link: https://www.econbiz.de/10011590906
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The multiplier effect in two-sided markets with bilateral investments
Dizdar, Deniz; Moldovanu, Benny; Szech, Nora - 2017
properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … how it interacts with other important factors such as the costs of investment and the signaling incentives induced by …
Persistent link: https://www.econbiz.de/10011758059
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From financial to real economic crisis : evidence from individual firm-bank relationships in Germany
Dwenger, Nadja; Fossen, Frank M.; Simmler, Martin - 2015 - First version: February 14, 2015, This version: September 25, 2015
transmission of bank distress to the real economy - in particular, to real investment and labor employment by nonfinancial firms … supply downsize their real investment and labor employment significantly. This effect is larger for firms that are unable to …
Persistent link: https://www.econbiz.de/10011346644
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The effect of bank shocks on firm-level and aggregate investment
Amador, João; Nagengast, Arne J. - 2016
We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … are found to impair firm-level investment in all firms in our sample, but in particular for small firms and those with no … 20–40% of aggregate investment dynamics. …
Persistent link: https://www.econbiz.de/10011495499
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Financial shocks and the relative dynamics of tangible and intangible investment : evidence from the euro area
Gareis, Johannes; Mayer, Eric - 2020
autoregres-sion (SVAR) framework, that, in response to an adverse financial shock, tangible in-vestment falls more than … intangible investment. This positive co-movement betweentangible and intangible investment as well as the relative resilience of … intangibleinvestment pose a challenge for the theoretical model. We show that investment-specific adjustment costs help in reconciling the …
Persistent link: https://www.econbiz.de/10012256498