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The hold-up problem with flexible unobservable investments

Krähmer, Daniel - 2024

The paper studies the canonical hold-up problem with one-sided investment by the buyer and full ex post bargaining power by the seller. The buyer can covertly choose any distribution of valuations at a cost and privately observes her valuation. The main result shows that in contrast to the...

Persistent link: https://www.econbiz.de/10014492466

The hold-up problem with flexible unobservable investments

Krähmer, Daniel - 2024

Persistent link: https://www.econbiz.de/10014482789

Auction design with endogenously correlated buyer types

Krähmer, Daniel - In: Journal of Economic Theory 147 (2012) 1, pp. 118-141

This paper studies optimal auction design when the seller can affect the buyersʼ valuations through an unobservable ex ante investment. The key insight is that the optimal mechanism may have the seller play a mixed investment strategy so as to create correlation between the buyersʼ otherwise...

Persistent link: https://www.econbiz.de/10011042975

Optimality of sequential screening with multiple units and ex post participation constraints

Krähmer, Daniel; Strausz, Roland - In: Economics letters 142 (2016), pp. 64-68

Persistent link: https://www.econbiz.de/10011616671

Exit options in incomplete contracts with asymmetric information

Bester, Helmut; Krähmer, Daniel - 2009

This paper analyzes bilateral contracting in an environment with contractual incompleteness and asymmetric information. One party (the seller) makes an unverifiable quality choice and the other party (the buyer) has private information about its valuation. A simple exit option contract, which...

Persistent link: https://www.econbiz.de/10003798182

Optimal sales contracts with withdrawal rights

Krähmer, Daniel; Strausz, Roland - 2014

We introduce ex post participation constraints in the standard sequential screening model. This captures the presence …

Persistent link: https://www.econbiz.de/10010402944

Sequential versus static screening : an equivalence result

Krähmer, Daniel; Strausz, Roland - 2017

We show that every sequential screening model is equivalent to a standard text book static screening model. We use this … result and apply well-established techniques from static screening to obtain solutions for classes of sequential screening … models for which standard sequential screening techniques are not applicable. Moreover, we identify the counterparts of well …

Persistent link: https://www.econbiz.de/10011626592

Dynamic screening with verifiable bankruptcy

Krähmer, Daniel; Strausz, Roland - 2022

We consider a dynamic screening model where the agent may go bankrupt due to, for example, cash constraints. We model …

Persistent link: https://www.econbiz.de/10014476119

Advertising and conspicuous consumption

Krähmer, Daniel - 2005

The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand's image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous consumption by rendering brands a signalling device. In a...

Persistent link: https://www.econbiz.de/10010366557

Advertising and Conspicuous Consumption

Krähmer, Daniel - In: Journal of Institutional and Theoretical Economics (JITE) 162 (2006) 4, pp. 661-682

This paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand's image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous consumption by rendering brands a signalling device. In a...

Persistent link: https://www.econbiz.de/10005823363