Showing 1 - 10 of 309
bunching occurs, the bunching interval is necessarily smaller. Additionally, under certain conditions the monopoly solution may … even achieve the first best (i.e., production efficiency). We also demonstrate that the optimal monopoly solutions can be …
Persistent link: https://www.econbiz.de/10012010066
taking an (irreversible) action. We define \textit{asymptotic learning} as the fraction of agents taking the correct action … converging to one as a society grows large. Under truthful communication, we show that asymptotic learning occurs if (and under … ``information hubs'', which receive and distribute a large amount of information. Asymptotic learning therefore requires information …
Persistent link: https://www.econbiz.de/10011599505
We solve a long-term contracting problem with symmetric uncertainty about the agent's quality, and a hidden action of the agent. As information about quality accumulates, incentives become easier to provide because the agent has less room to manipulate the principal's beliefs. This result is...
Persistent link: https://www.econbiz.de/10011599530
We study the interaction between an agent of uncertain type, whose project gives rise to both good and bad news, and an evaluator who must decide if and when to fire the agent. The agent can hide bad news from the evaluator at some cost, and will do so if this secures her a significant increase...
Persistent link: https://www.econbiz.de/10014537007
We develop a dynamic framework of strategic information transmission through cheap talk in a social network. Privately informed agents have different preferences about the action to be implemented by each agent and repeatedly communicate with their neighbors in the network. We first characterize...
Persistent link: https://www.econbiz.de/10012215318
We solve a long-term contracting problem with symmetric uncertainty about the agent's quality, and a hidden action of the agent. As information about quality accumulates, incentives become easier to provide because the agent has less room to manipulate the principal's beliefs. This result is...
Persistent link: https://www.econbiz.de/10011019211
taking an (irreversible) action. We define \textit{asymptotic learning} as the fraction of agents taking the correct action … converging to one as a society grows large. Under truthful communication, we show that asymptotic learning occurs if (and under … ``information hubs'', which receive and distribute a large amount of information. Asymptotic learning therefore requires information …
Persistent link: https://www.econbiz.de/10010738405
In a range of settings, private firms manage peer effects by sorting agents into different groups, be they schools, communities, or product categories. This paper considers such a firm, which controls group entry by setting a series of anonymous prices. We show that private provision...
Persistent link: https://www.econbiz.de/10011599416
In a range of settings, private firms manage peer effects by sorting agents into different groups, be they schools, communities, or product categories. This paper considers such a firm, which controls group entry by setting a series of anonymous prices. We show that private provision...
Persistent link: https://www.econbiz.de/10005515733
A speaker wishes to persuade a listener to take a certain action. The conditions under which the request is justified, from the listener’s point of view, depend on the state of the world, which is known only to the speaker. Each state is characterized by a set of statements from which the...
Persistent link: https://www.econbiz.de/10011599376