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side. We use the model to investigate the welfare effects of discrimination (also known as risk selection). We postulate … find that aggregate surplus decreases when risk aversion is high. When risk aversion is low however, discrimination …
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Travelers often are incompletely informed about travel alternatives, which has important implications for various domains of travel behavior such as whether or not to make a trip, modal choice, the timing of a trip or route choice. During the last decade large efforts have been made to increase...
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I consider a situation in which heterogenous senders (applicants) compete in order to be selected by one receiver (employer). Productivity is private information to the senders, and the receiver processes imperfect signals (applications) to screen among applicants. The information-processing...
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