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On existence of private unemployment insurance with advance information on future job losses
Denderski, Piotr; Stoltenberg, Christian A. - 2021
We study the existence of a profitable unemployment insurance market in a dynamic economy with adverse selection rooting in information on future job losses. The new feature of the model is that the insurer and workers interact repeatedly. Repeated interactions make it possible to threaten...
Persistent link: https://www.econbiz.de/10012606018
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Optimal Incentives without Expected Utility
González-Jiménez, Víctor - 2022
This paper investigates the optimal design of incentives when agents distort probabilities. We show that the type of probability distortion displayed by the agent and its degree determine whether an incentivecompatible contract can be implemented, the strength of the incentives included in the...
Persistent link: https://www.econbiz.de/10014321765
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Inverse Adverse Selection: The Market for Gems
Dari-Mattiacci, Giuseppe; Onderstal, Sander; Parisi, … - 2011
This paper studies markets plagued with asymmetric information on the quality of traded goods. In Akerlof's setting, sellers are better informed than buyers. In contrast, we examine cases where buyers are better informed than sellers. This creates an inverse adverse selection problem: The market...
Persistent link: https://www.econbiz.de/10010325638
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Decision Initiation, Decision Implementation, and the Allocation of Decision Rights
Sloof, Randolph; von Siemens, Ferdinand A. - 2015
initiation and implementation. If these have social preferences, they might thus sabotage both project choices and implementation … to express their discontent with the allocation of decision rights. How decisions come about also affects implementation … implementation leads to more delegation, but only if workers have high costs of obstructing informed decisions. We further find that …
Persistent link: https://www.econbiz.de/10011403558
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Competitive search with private information: Can price signal quality?
Albrecht, James W.; Cai, Xiaoming; Gautier, Pieter; … - 2024
This paper considers competitive search equilibrium in a market for a good whose quality differs across sellers. Each seller knows the quality of the good that he or she is offering for sale, but buyers cannot observe quality directly. We thus have a "market for lemons" with competitive search...
Persistent link: https://www.econbiz.de/10015054167
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Behavioral Learning Equilibria
Hommes, Cars; Zhu, Mei - 2013
We propose behavioral learning equilibria as a plausible explanation of coordination of individual expectations and aggregate phenomena such as excess volatility in stock prices and high persistence in inflation. Boundedly rational agents use a simple univariate linear forecasting rule and...
Persistent link: https://www.econbiz.de/10010326517
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Perfection and Stability of Stationary Points with Applications to Noncooperative Games
van der Laan, Gerard; Talman, Dolf; Yang, Zaifu - 2002
It is well known that an upper semi-continuous compact- and convex-valued mapping fi from a nonempty compact and convex set X to the Euclidean space of which X is a subset has at least one stationary point, being a point in X at which the image fi(x) has a nonempty intersection with the normal...
Persistent link: https://www.econbiz.de/10010324999
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Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies
Morand, Olivier F.; Reffett, Kevin L. - 2002
In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in which the state-space is unbounded. Important examples of such economies are single-sector growth models with production externalities, valued fiat money, monopolistic competition, and/or...
Persistent link: https://www.econbiz.de/10010325013
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Quantity Constrained Equilibria
Herings, P. Jean-Jacques; van der Laan, Gerard; Talman, Dolf - 2001
In a standard general equilibrium model it is assumed that there are no price restictionsand that prices adjust infinitely fast to their equilibrium values. In this paper the set ofadmissible prices is allowed to be an arbitrary convex set. For such an arbitrary set it cannotbe guaranteed that...
Persistent link: https://www.econbiz.de/10010325014
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On Borel Probability Measures and Noncooperative Game Theory
Frenk, J.B.G.; Kassay, G.; Protassov, V. - 2002
In this paper the well-known minimax theorems of Wald, Ville and Von Neumann are generalized under weaker topological conditions on the payoff function f and/or extended to the larger set of the Borel probability measures instead of the set of mixed strategies.
Persistent link: https://www.econbiz.de/10010325066