Showing 1 - 10 of 3,430
We study the effects of granting an exit option that enables the private party to early terminate a PPP project if it turns out to be financially loss-making. In a continuous-time setting with hidden information about operating profits, we show that an exit option, acting as a risk-sharing...
Persistent link: https://www.econbiz.de/10012195007
Drawing on the real-options theory we analyse bidding behaviour in a sealed-bid-first-score procurement auction where suppliers, facing variable production costs, must simultaneously report the contract price and the cost level at which they intend to perform the project. We show that this award...
Persistent link: https://www.econbiz.de/10011599251
We analyse the marriage decisions of men and women in rural India, focusing on the added attractiveness of sanitation within the marital living arrangement. We demonstrate that the Government’s Total Sanitation Campaign (TSC) changed marriage market outcomes for both men and women. To...
Persistent link: https://www.econbiz.de/10012799787
We study the effects of granting an exit option that enables the private party to early terminate a PPP project if it turns out to be loss-making. In a continuous time setting with hidden information about stochastic operating profits, we show that a revenue-maximizing government can optimally...
Persistent link: https://www.econbiz.de/10011925624
The paper addresses the mechanism design problem of eliciting truthful information from a committee of informed experts who collude in their information disclosure strategies. It is shown that under fairly general conditions full information disclosure is possible if and only if the induced...
Persistent link: https://www.econbiz.de/10009517819
This paper uses seven nationally representative time use surveys in Latin America to identify key stylized facts regarding the quantity and quality of parental time investment on the skill formation of their children. Traditional models of household behavior have failed to account for the...
Persistent link: https://www.econbiz.de/10011661860
We develop a model of relational contracts with moral hazard and asymmetric persistent information about an employee's type. We find that the form of the optimal contract depends on the job characteristics as well as the distribution of employees' talent. Bonus contracts are more likely to be...
Persistent link: https://www.econbiz.de/10010382180
We investigate the problem of subsidising afforestation when private information exists with respect to the level of private utility derived from the project. We develop a simple model that allows for an intelligent design of contracts when information is asymmetric. The model involves the...
Persistent link: https://www.econbiz.de/10011601121
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good to an imperfectly competitive input market. We apply the taxonomy of business strategies introduced by Fudenberg and Tirole (1984) to characterize the different equilibria. We...
Persistent link: https://www.econbiz.de/10001783571
In many industries it is quite common to observe firms delegating the production of essential inputs to independent ventures jointly established with competing rivals. The diffusion of this arrangement and the favourable stance of competition authorities call for the assessment of the social and...
Persistent link: https://www.econbiz.de/10008823900