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The negative value of public information in the Glosten–Milgrom model

Pancs, Romans - In: Economics Letters 124 (2014) 2, pp. 207-210

In the standard market-microstructure model of Glosten and Milgrom (1985), public information can have negative social value. Equivalently, an increase in informational asymmetry can raise the total surplus from trade.

Persistent link: https://www.econbiz.de/10010933304

Supermarkets versus local shopping: Welfare implications of retail provision mode

Rudkin, Simon - In: Economics Letters 124 (2014) 3, pp. 396-398

Presenting a novel model of local shopping, the benefit of monopoly provision due to market size effects is explored. Prices are lower, variety and aggregate consumer surplus higher, than local shopping but many shoppers’ utility falls. Policymakers should take care.

Persistent link: https://www.econbiz.de/10010930708

Housing deep-habit model: Mutual implications of macroeconomics and asset pricing

Huang, MeiChi - In: Economics Letters 116 (2012) 3, pp. 526-530

The paper develops a housing deep-habit model to explore linkages between macroeconomic decisions and asset pricing of nondurable and housing goods. Owing to heterogeneous characteristics of housing assets, the model sheds insights into the counter-cyclical property of housing markups.

Persistent link: https://www.econbiz.de/10010594139

Every shroud has a silver lining: The visible benefits of hidden surcharges

de Meza, David; Reyniers, Diane - In: Economics Letters 116 (2012) 2, pp. 151-153

Opportunities for shrouded pricing drive down upfront price as firms compete to capture new customers. Unless the surcharge is sufficiently high, consumers are worse off if the practice is banned, assuming Cournot–Nash equilibrium and isoelastic demand.

Persistent link: https://www.econbiz.de/10010597218

The importance of industry classification in estimating concentration ratios

Hrazdil, Karel; Zhang, Ray - In: Economics Letters 114 (2012) 2, pp. 224-227

We compare different industry concentration ratios based on the Standard Industry Classification (SIC) system to ratios based on the Global Industry Classification Standard (GICS) system and demonstrate through the analysis of industry markups that GICS-based measures are better proxies for the...

Persistent link: https://www.econbiz.de/10010572159

Farmers’ performance and subject pool effect in decentralized bargaining markets

Waichman, Israel; Ness, Christiane - In: Economics Letters 115 (2012) 3, pp. 366-368

We report results from a decentralized bargaining market experiment conducted with farmers and students. Our results indicate that despite its bad reputation, performance is highly efficient (although not as efficient as the competitive equilibrium prediction). Farmers and students perform...

Persistent link: https://www.econbiz.de/10010576447

An empirical investigation of efficiency and price uniformity in competing auctions

Andersson, T.; Andersson, C.; Andersson, F. - In: Economics Letters 116 (2012) 1, pp. 99-101

This paper investigates hypotheses related to efficiency and price uniformity in online competing auctions based on two theoretical predictions from Peters and Severinov [Peters, M., Severinov, S., 2006. Internet auctions with many traders. Journal of Economic Theory 130, 220–245]. The...

Persistent link: https://www.econbiz.de/10011041639

Increasing marginal costs are strategically beneficial in forward trading

Breitmoser, Yves - In: Economics Letters 119 (2013) 2, pp. 109-112

The possibility of forward trading has been shown to restore social efficiency in Cournot oligopolies if marginal costs are constant. The paper analyzes the more general case that marginal costs are non-decreasing. I show that increasing marginal costs diminish the “strategic...

Persistent link: https://www.econbiz.de/10011041667

Myth or fact? The beauty premium across the wage distribution in Germany

Doorley, Karina; Sierminska, Eva - In: Economics Letters 129 (2015) C, pp. 29-34

We allow for differential effects of physical appearance across the wage distribution using a technique traditionally … of the wage distribution. The average beauty premium for men is larger at 5%–7% and is present throughout the wage … distribution. Both of these vary by education level. We find that differences in characteristics (such as age, family composition …

Persistent link: https://www.econbiz.de/10011263438

Does the public sector over-provide club goods? A general result

al-Nowaihi, Ali; Fraser, Clive D. - In: Economics Letters 117 (2012) 2, pp. 397-400

With nondistortionary user charges, the first best and second best of a single-club-exogenous-income economy with identical individuals coincide. They differ if incomes differ. Overprovision of a superior club good then occurs in the Second Best.

Persistent link: https://www.econbiz.de/10010580446