Showing 1 - 8 of 8
The well-known Klein-Monti model of bank behavior considers a monopolistic bank. We demonstrate that this model’s results on the comparative static effects of a change in the exogenous interbank market interest rate do not necessarily hold in oligopolistic Cournot or Stackelberg...
Persistent link: https://www.econbiz.de/10011251574
We present a model which combines elements of an auction and a rent-seeking contest. Players compete for a prize. Apart from exerting lobbying efforts, they also have to submit a bid which is payable only if they win the prize. First, we ana-lyze the model if the returns-to-scale parameters of...
Persistent link: https://www.econbiz.de/10011251641
We investigate the impact of advertising in a simple static differentiated duopoly model. First, we consider the Nash equilibrium of the situation in which the duopolistic firms compete simultaneously with two instruments, i.e. the prices and the advertising expenditures. Second, we examine the...
Persistent link: https://www.econbiz.de/10011251261
It is known that the option of delegation in a rent-seeking contest between two individuals leads to a prisoner’s dilemma. In equilibrium no player hires a delegate, while it is Pareto-efficient if both would hire one. This paper shows that this result does not generalize to a contest between...
Persistent link: https://www.econbiz.de/10011251420
Abstract : We consider delegation in a rent-seeking contest with two players, where delegates have more instruments at their disposal than the main players. We endogenize both the decision to hire a delegate and the contingent fee offered to the delegates. We characterize the situations when...
Persistent link: https://www.econbiz.de/10011251523
The paper considers a (static) portfolio system that satisfies adding-up contraints and the gross substitution theorem. The paper shows the relationship of the two conditions to the weak dominant diagonal property of the matrix of interest rate elasticities. This enables to investigate the...
Persistent link: https://www.econbiz.de/10011251524
We consider a winner-take-all contest extended with a principal-agent re-lationship. One of the two players, say player 1, offers a contract to an agent to act in the contest as a delegate on his behalf. The wage offered to the agent is deliberately chosen by player 1. We characterize the Nash...
Persistent link: https://www.econbiz.de/10011251617
We propose to assess the influence of a number of events on the degree of competition in the Dutch electricity wholesale market over the period 2006-2011 through a decomposition method based on the Residual Supply Index. We distinguish regulatory market-integration events, firm-level events and...
Persistent link: https://www.econbiz.de/10011252464