Showing 1 - 10 of 114
We consider the optimality of liquidated damages contracts in a setting of contractual ambiguity and potential for disputes. We show that when parties are ambiguity averse enough, they will optimally choose liquidated damages contracts and sacrifice risk sharing opportunities.
Persistent link: https://www.econbiz.de/10010906692
We study type spaces where a player's type at a state is a conditional probability on the space. We axiomatize these spaces using conditional belief operators, examining three additional axioms of increasing strength. First, introspection, which requires the agent to be unconditionally certain...
Persistent link: https://www.econbiz.de/10010931186
In this paper, we introduce a notion of epistemic equivalence between hierarchies of conditional beliefs and hierarchies of lexicographic beliefs, thus extending the standard equivalence results of Halpern (2010) and Brandenburger et al. (2007) to an interactive setting, and we show that there...
Persistent link: https://www.econbiz.de/10010785196
information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient …
Persistent link: https://www.econbiz.de/10010662458
judgments manage to efficiently use all voters' private information. While new in judgment aggregation theory, this perspective … conflicts of information rather than of interest. Combining the two bodies of literature, we consider a simple judgment … aggregation problem and model the private information underlying voters' judgments. Assuming that voters share a preference for …
Persistent link: https://www.econbiz.de/10011049697
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for potential applications of asymmetric unawareness. Applying our unawareness belief structures, we show that the common prior assumption is too weak to rule out...
Persistent link: https://www.econbiz.de/10011049829
We define generalized extensive-form games which allow for asymmetric awareness of actions. We extend Pearceʼs (1984) notion of extensive-form (correlated) rationalizability to this setting, explore its properties, and prove existence.
Persistent link: https://www.econbiz.de/10011049860
information), informative and observed only by the principal (private information), or also observed by the agent (public … information). We show that, from an ex ante standpoint (before the signal is observed): (i) the agent prefers private to both null … and public information; (ii) the principal sometimes prefers null to both private and public information; and (iii) when …
Persistent link: https://www.econbiz.de/10011049676
information flow across partnerships, we consider the case in which players can issue a “reference letter” to verify at least that …
Persistent link: https://www.econbiz.de/10011049765
This paper investigates the role of endogenous timing of decisions on coordination under asymmetric information. In the … coordination: a learning effect (early decisions reveal information) and a complementarity effect (early decisions eliminate …
Persistent link: https://www.econbiz.de/10011049850