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The CNBC Effect: Welfare Effects of Public Information

Morris, Stephen; Shin, Hyun Song - Cowles Foundation for Research in Economics, Yale University - 2001

What are the welfare effects of enhanced dissemination of public information through the media and disclosures by market participants with high public visibility? For instance, is it always desirable to have frequent and timely publications of economic statistics by government agencies and the...

Persistent link: https://www.econbiz.de/10005593366

Wage Concessions and Debt Forgiveness as Strategic Responses to Financial Distress

Margolis, D.N.; Viala, P. - 1998

We propose a model of strategic interactions between a firm, its workers and its creditors in a dynamic, uncertain environment. We show that the fact that the firm can play off one stakeholders against another increases the likelihood and magnitude of concessions being made, either on a...

Persistent link: https://www.econbiz.de/10005486803

Iterative Reasoning in an Experimental "Lemons" Market.

Kirstein, Annette; Kirstein, Roland - Fakultät für Wirtschaftswissenschaft, … - 2007

In this paper we experimentally test a theory of boundedly rational behavior in a "lemons" market. We analyze two … empirical observations deviate substantially from the predictions of rational choice theory: Even after 20 repetitions, the … actual outcome is closer to efficiency than expected. We examine to which extent the theory of iterated reasoning contributes …

Persistent link: https://www.econbiz.de/10005488128

Reversibility in Dynamic Coordination Problems

Kovac, Eugen; Steiner, Jakub - School of Economics, University of Edinburgh - 2008

Agents at the beginning of a dynamic coordination process (1) are uncertain about actions of their fellow players and (2) anticipate receiving strategically relevant information later on in the process. In such environments, the irreversibility of early actions plays an important role in the...

Persistent link: https://www.econbiz.de/10005369079

Technological standards with local externalities and decentralized behaviour

Miller, John H.; Cowan, Robin - In: Journal of Evolutionary Economics 8 (1998) 3, pp. 285-296

We model a situation in which agents must choose between two technologies that operate under local, positive network externalities. We find that decentralized behaviour can lead to the emergence of a technical standard, but can also result in a variety of other equilibria. Policy to eliminate...

Persistent link: https://www.econbiz.de/10005396154

Optimal debt contracts and diversity of opinions: an extreme case of bunching

Renou, Ludovic; Carlier, Guillaume - Royal Economic Society - RES - 2003

This paper studies optimal menus of debt contracts such as secured debentures or bonds, in the presence of diversity of opinions between borrowers and lenders. We first characterize incentive compatible contracts, then prove the existence of optimal debt contracts. Finally, we are able to...

Persistent link: https://www.econbiz.de/10005398544

Capital account Liberalization and exchange rate regime choice, What Scope for flexibility in Tunisia ?

Sami, Ben Ali Mohamed - EconWPA - 2005

Capital account liberalization and exchange rate regime choice, what scope for flexibility in Tunisia? The adoption by Tunisia of structural reforms of its economy in a context of gradual opening since 1986, had allowed the instauration in January 1993 of the convertibility of its current...

Persistent link: https://www.econbiz.de/10005407508

What restrictions do Bayesian games impose on the value of information?

Lehrer, Ehud; Rosenberg, Dinah - EconWPA - 2003

In a Bayesian game players play an unknown game. Before the game starts some players may receive a signal regarding the specific game actually played. Typically, information structures that determine different signals, induce different equilibrium payoffs.In zero-sum games the equilibrium payoff...

Persistent link: https://www.econbiz.de/10005407510

Voting and Lottery Drafts as Efficient Public Goods Mechanisms

Ledyard, John O.; Palfrey, Thomas R. - EconWPA - 1994

This paper characterizes interim efficient mechanisms for public good production and cost allocation in a two-type environment with risk neutral, quasi-linear preferences and fixed size projects, where the distribution of the private good, as well as the public goods decision, affects social...

Persistent link: https://www.econbiz.de/10005407511

On the Relation Between Perfect Equilibria in Extensive Form Games and Proper Equilibria in Normal Form Games

Hillas, John - EconWPA - 1996

This paper examines the question of the extent to which it is true that any equilibrium that is quasi-perfect in any extensive form game having a given normal form is necessarily proper. If one fixes not only the equilibrium in question but also a a sequence of completely mixed strategies...

Persistent link: https://www.econbiz.de/10005407514