Showing 1 - 10 of 28
This paper proposes a model for a certification market with an imperfect testing technology. Such a technology only assures that whenever two products are tested the higher quality product is more likely to pass than the lower quality one. When only one certifier with such testing technology is...
Persistent link: https://www.econbiz.de/10012722369
Including the entry decision in a Bertrand model with imperfectly informed consumers, we introduce a trade-off at the level of social welfare. On the one hand, market transparency is beneficial when the number of firms is exogenously given. On the other, a higher degree of market transparency...
Persistent link: https://www.econbiz.de/10013135842
This study uses a laboratory experiment to analyze the effectiveness of performance based monetary incentives in the teaching process. The process of knowledge transmission is recreated using a video-stream. Four different teacher payment schemes are compared, three of which depend on the...
Persistent link: https://www.econbiz.de/10013107873
It is argued that drug consumption, most commonly alcohol drinking, can be a technology to give up some control over one’s actions and words. It can be employed by trustworthy players to reveal their type. Similarly alcohol can function as a “social lubricant” and faciliate type revelation...
Persistent link: https://www.econbiz.de/10014199330
This paper studies a contest in which players with unobservable types may form an alliance in a pre-stage of the game to join their forces and compete for a prize. We characterize the pure strategy equilibria of this game of incomplete information. We show that if the formation of an alliance is...
Persistent link: https://www.econbiz.de/10013025736
Do firms under relative payoff s maximizing (RPM) behavior always choose a strategy profile that results in tougher competition compared to firms under absolute payoffs maximizing (APM) behavior? In this paper we will address this issue through a simple model of symmetric oligopoly where firms...
Persistent link: https://www.econbiz.de/10013002549
Hotelling's famous ‘Principle of Minimum Differentiation' suggests that two firms engaging in spatial competition will decide to locate at the same place. Interpreting spatial competition as modeling product differentiation, firms will thus offer products that are not differentiated and...
Persistent link: https://www.econbiz.de/10013006802
The direct evolutionary approach according to Leininger (2003) states that players in a two player Tullock rent-seeking contest within a finite population behave "as if" they were relative payoff maximizers. Accordingly contest expenditures are higher than in Nash equilibrium. The indirect...
Persistent link: https://www.econbiz.de/10013122025
We complement the empirical evidence on the sustainability of weight loss achieved through cash rewards and, for the first time, rigorously examine the potential of cash rewards to prevent weight cycling. In a three period randomized controlled trial, about 700 obese persons were first assigned...
Persistent link: https://www.econbiz.de/10014137952
We provide an axiomatic framework for exchange markets with a willingness-to-pay/willingness-to-accept discrepancy. First, we obtain a two parameter family of market invariants under price-scaling representing the excess demand. One of the parameters can be identified as endowment. The other is...
Persistent link: https://www.econbiz.de/10012718146