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Persistent link: https://www.econbiz.de/10009401810
and methods are explained using real-world examples backed by precise analytic material. The book features many important …
Persistent link: https://www.econbiz.de/10010681117
and methods are explained using real-world examples backed by precise analytic material. The book features many important …
Persistent link: https://www.econbiz.de/10010681701
We develop a North-South model of reciprocal antidumping (AD). We find that AD wars are winnable for the Northern firm …
Persistent link: https://www.econbiz.de/10008554221
This paper revisits the signalling literature of the interactions between terrorist organisations and governments. It … argues that the theoretical literature to date, and particularly the signalling literature, builds models from the very … realm of terrorist threats. By inverting the nature of the signalling, flipping it from a violent act to a peaceful one …
Persistent link: https://www.econbiz.de/10010840251
In this paper, I examine whether and how warranties serve as signals of product quality in an environment where there are opportunities for consumer moral hazard. My model is very similar to Grossman's. A risk neutral monopolist produced a good of fixed and exogenous quality. This product is...
Persistent link: https://www.econbiz.de/10005463971
With cheap talk, more can be achieved by long conversations than by a single message - even when one side is strictly better informed than the other.
Persistent link: https://www.econbiz.de/10005752795
We study the signalling strategy of a principal who is privately informed about its high demand potential to an … signalling cost, the magnitude of distortion in the two-part scheme is smaller when service is unobservable than when it is not …. Thus, a signalling strategy employing the fixed and variable fees is harder to detect under moral hazard. Empirical studies …
Persistent link: https://www.econbiz.de/10009197518
The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However, most R&D investment projects are open to competing...
Persistent link: https://www.econbiz.de/10005013067
A vast and often confusing economics literature relates competition to investment in innovation. Following Joseph Schumpeter, one view is that monopoly and large scale promote investment in research and development by allowing a firm to capture a larger fraction of its benefits and by providing...
Persistent link: https://www.econbiz.de/10005585287