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In this paper we study how volatility in monetary policy affects economic performance in the presence of endogenously chosen information structures. To isolate the effects produced by the interaction of uncertainty in monetary policy and (possibly) asymmetric information, we consider a model in...
Persistent link: https://www.econbiz.de/10012471724
The foundations of incomplete contracts have been questioned using or extending the subgame perfect implementation approach of Moore and Repullo (1988). We consider the robustness of subgame perfect implementation to the introduction of small amounts of asymmetric information. We show that...
Persistent link: https://www.econbiz.de/10012463482
We present and experimentally test a mechanism that provides a simple, natural, low cost, and realistic solution to the problem of compliance with socially determined efficient actions, such as contributing to a public good. We note that small self-governing organizations often place enforcement...
Persistent link: https://www.econbiz.de/10012461627
outline a theory that considers conditions under which a politician would and would not prefer reputational development and …
Persistent link: https://www.econbiz.de/10012471301
In a discretionary regime the monetary authority can print more money and create more inflation than people expect. But, although these inflation surprises can have some benefits, they cannot arise systematically in equilibrium when people understand the policymaker's incentives and form their...
Persistent link: https://www.econbiz.de/10012478024
characteristics produce structures utilizing reputation …
Persistent link: https://www.econbiz.de/10012479031
We develop a theory of the market for individual reputation, an indicator of regard by one's peers and others. The … central questions are: 1) Does the quantity of exposures raise reputation independent of their quality? and 2) Assuming that … overall quality matters for reputation, does the quality of an individual's most important exposure have an extra effect on …
Persistent link: https://www.econbiz.de/10012463122
Friedman (1962) argued that a free market in which schools compete based upon their reputation would lead to an …: school reputation in the spirit of Holmstrom (1982). The first result is that if schools cannot select students based upon …
Persistent link: https://www.econbiz.de/10012463538
which firms slant their reports toward the prior beliefs of their customers in order to build a reputation for quality. Bias …
Persistent link: https://www.econbiz.de/10012467012
-interest theory. In the limit, much of the observed behavior in the marketplace that is consistent with social preferences is due to … buyer can verify quality via a third-party certifier. The data also speak to theories of how reputation effects enhance … market performance. In particular, reputation and the monitoring of quality are found to be complements, and findings suggest …
Persistent link: https://www.econbiz.de/10012467061