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The multi-faceted concept of transparency

Forssbæck, Jens; Oxelheim, Lars - 2014

Transparency has become a catchword and in the economic-political debate is often seen as a universal remedy for all … sorts of problems. In this paper, we analyze and discuss the meaning and use of the concept of transparency in economic … research. We look for common denominators across different areas where the concept is used, and find that transparency in …

Persistent link: https://www.econbiz.de/10010393290

Information updating and insurance dropout : evidence from dental insurance

Grönqvist, Erik (contributor) - 2004 - [Elektronische Ressource]

Micro data from a dental insurance natural experiment is used to analyze why agents opt out of insurance. The purpose is to relate the dropout decision to new information on risk, acquired by the policy holder and the insurer. The results show that agents tend to leave the insurance when...

Persistent link: https://www.econbiz.de/10002570047

Information Asymmetries in Consumer Credit Markets : Evidence from Payday Loans

Skiba, Paige Marta; Dobbie, Will - 2011

This paper tests for incentive and selection effects in a subprime consumer credit market. We estimate the incentive effect of loan size on default using sharp discontinuities in loan eligibility rules. This allows us to estimate the magnitude of selection from the cross-sectional correlation...

Persistent link: https://www.econbiz.de/10014180265

Investing in Trading Opportunities in Dynamic Adverse Selection

Heinsalu, Sander - 2017

I analyse a market with asymmetric information, interdependent values and trade frictions. The frictions can be reduced at a cost, e.g. by increasing attention, search, lobbying or computing power. For some parameters, there is a unique equilibrium in which an increase in the gains from trade...

Persistent link: https://www.econbiz.de/10012954012

Learning by Owning in a Lemons Market

Martel, Jordan - 2019

We study market dynamics when an owner learns over time about the quality of her asset. Since this information is private, the owner sells strategically to a less informed buyer following sufficient negative information. In response, market prices feature a "U-shape" relative to the length of...

Persistent link: https://www.econbiz.de/10012903225

Ex Ante Information in Adverse Selection

Drugov, Mikhail - 2011

This paper studies the effects of the signal available before a standard Baron-Myerson contracting takes place. It shows that, while the principal's profits increase with the quality of the signal, the agent's rent also increases if the signal concerns the realizations where the principal is...

Persistent link: https://www.econbiz.de/10013133421

Real Option Financing Under Asymmetric Information

Bouvard, Matthieu - 2012

I study the impact of capital market imperfections on the exercise of a real option. An entrepreneur has private information about a venture for which she seeks outside funding. An initial investment gives access to a continuous flow of information about the project. The duration of that...

Persistent link: https://www.econbiz.de/10013116735

Real Option Financing Under Asymmetric Information

Bouvard, Matthieu - 2010

I study the impact of capital market imperfections on the exercise of a real option. An entrepreneur has private information about a venture for which she seeks outside funding. An initial investment gives access to a continuous ﬂow of information about the project. The duration of that...

Persistent link: https://www.econbiz.de/10013146636

Endogenous Offer Arrival in the Market for Lemons

Aghamolla, Cyrus; Hashimoto, Tadashi - 2022

We allow buyers to choose the timing of offers in a dynamic adverse selection model with a single seller. Buyers have private information and can delay their one-time private offers to learn from other buyers by observing trading behavior. We find that the equilibrium exhibits maximum delay in...

Persistent link: https://www.econbiz.de/10014238833

Arbitrary Bilateral Bargaining in Decentralized Markets for Lemons

Barsanetti, Bruno; Camargo, Braz - 2021

We investigate the efficiency of dynamic random matching and bilateral bargaining markets with adverse selection. We take a detail-free approach to the bargaining game, assuming only that: (a) each agent's actions are optimal given the equilibrium market conditions and the equilibrium strategy...

Persistent link: https://www.econbiz.de/10013217866