Similar Search Results

Wealth as a signal in the search model of money

Okumura, Tsunao - 2005

This paper investigates the possibility that wealth (holdings of money) serves as a signal of ability to produce high quality products for agents who cannot directly observe the quality of the products. A producer's wealth may advertise past success in selling products to agents who knew the...

Persistent link: https://www.econbiz.de/10010266277

Advertising as a distortion of social learning

Brekke, Kjell Arne; Rege, Mari - 2006

By combining a theory of herding behavior with the phenomenon of availability heuristic, this paper shows that non …

Persistent link: https://www.econbiz.de/10010284386

Minimum Price Guarantees In a Consumer Search Model

Janssen, Maarten; Parakhonyak, Alexei - 2009

This paper is the first to examine the effect of minimum price guaranteesin a sequential search model. Minimum price guarantees are notadvertised and only known to consumers when they come to the shop.We show that in such an environment, minimum price guarantees increasethe value of buying the...

Persistent link: https://www.econbiz.de/10010325862

Information Theory and the Role of Intermediaries in Corporate Governance

Schmidt, Reinhard H.; Tyrell, Marcel - 2004

We investigate the connection between corporate governance system configurations and the role of intermediaries in the respective systems from a informational perspective. Building on the economics of information we show that it is meaningful to distinguish between internalisation and...

Persistent link: https://www.econbiz.de/10010263309

Business as usual: A consumer search theory of sticky prices and asymmetric price adjustment

Cabral, Luís; Fishman, Arthur - 2010

Empirical evidence suggests that prices are sticky with respect to cost changes. Moreover, prices respond more rapidly to cost increases than to cost decreases. We develop a search theoretic model which is consistent with this evidence and allows for additional testable predictions. Our results...

Persistent link: https://www.econbiz.de/10010336044

The Nature of Equilibrium in Macroeconomics: A Critique of Equilibrium Search Theory

Aoki, Masanao; Yoshikawa, Hiroshi - 2008

The standard Walrasian equilibrium theory requires that the marginal value product of production factor such as labor … theory allegedly fills this gap by encompassing apparent disequilibrium phenomena in the neoclassical equilibrium framework …. Taking up Lucas and Prescott (1974) as a primary example, we show that the neoclassical search theory cannot explain the …

Persistent link: https://www.econbiz.de/10010298573

Minimum quality standards and novelty requirements in a one-shot development race

Prokop, Jacek; Regibeau, Pierre; Rockett, Katharine - 2009

The authors examine the timing and quality of product introduction in an R&D stopping game, where they allow for horizontal and vertical differentiation in the product market. They observe that discontinuous changes in introduction dates can occur as firms' abilities as researchers change....

Persistent link: https://www.econbiz.de/10010298821

Minimum quality standards and novelty requirements in a one-short development race

Prokop, Jacek; Regibeau, Pierre; Rockett, Katharine - In: Economics: The Open-Access, Open-Assessment E-Journal 4 (2010) 2010-15, pp. 1-49

We examine the timing and quality of product introduction in an R&D stopping game, where we allow for horizontal and vertical differentiation in the product market. We observe that discontinuous changes in introduction dates can occur as firms' abilities as researchers change. Further, when the...

Persistent link: https://www.econbiz.de/10010300296

Trade Policy of Transition Economics

Moraga, Jose Luis; Viaene, Jean-Marie - 2000

This paper focuses on ignored issues regarding the impact of trade reforms in transition economies. These economies are primarily characterized by a low quality of their products, large depreciations of their currencies, and a high degree of government intervention in economic activity. These...

Persistent link: https://www.econbiz.de/10010324646

Anti-dumping, Intra-industry Trade and Quality Reversals

Moraga-Gonzalez, Jose Luis; Viaene, Jean-Marie - 2004

We examine an export game where two firms (home and foreign), located in two differentcountries, produce vertically differentiated products. The foreign firm is the most efficientin terms of R&D costs of quality development and the foreign country is relatively larger andendowed with a...

Persistent link: https://www.econbiz.de/10010325360

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