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Equilibrium in a decentralized market with adverse selection
Blouin, Max R. - In: Economic Theory 22 (2003) 2, pp. 245-262
This paper deals with trade volume and distribution of surplus in markets subject to adverse selection. In a model where two qualities of a good exist, I show that if trade is decentralized (i.e. conducted via random pairwise meetings of agents), then all units of the good are traded, and all...
Persistent link: https://www.econbiz.de/10005597877
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Inverse Adverse Selection: The Market for Gems
Dari-Mattiacci, Giuseppe; Onderstal, Sander; Parisi, … - 2011
-value goods (lemons). We investigate the consequences of this inverse adverse selection and its potential solutions. The … uninformed buyer in a traditional market for lemons experiences the quality of the good he purchased; instead, the uninformed … the lemons problem often ineffective in the gems case. We further explore the theoretical and practical appeal of m arket …
Persistent link: https://www.econbiz.de/10010325638
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Inverse adverse selection : the market for gems
Dari Mattiacci, Giuseppe; Onderstal, Sander; Parisi, … - 2010
-value goods (lemons). We investigate the consequences of this inverse adverse selection and its potential solutions. The … uninformed buyer in a traditional market for lemons experiences the quality of the good he purchased; instead, the uninformed … the lemons problem often ineffective in the gems case. We further explore the theoretical and practical appeal of m arket …
Persistent link: https://www.econbiz.de/10011382752
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Inverse Adverse Selection: The Market for Gems
Dari-Mattiacci, Giuseppe; Onderstal, Sander; Parisi, … - Tinbergen Instituut - 2011
-value goods (lemons). We investigate the consequences of this inverse adverse selection and its potential solutions. The … uninformed buyer in a traditional market for lemons experiences the quality of the good he purchased; instead, the uninformed … the lemons problem often ineffective in the gems case. We further explore the theoretical and practical appeal of m arket …
Persistent link: https://www.econbiz.de/10011256127
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Inverse Adverse Selection: The Market for Gems
Dari-Mattiacci, Giuseppe; Onderstal, Sander; Parisi, … - Tinbergen Institute - 2011
-value goods (lemons). We investigate the consequences of this inverse adverse selection and its potential solutions. The … uninformed buyer in a traditional market for lemons experiences the quality of the good he purchased; instead, the uninformed … the lemons problem often ineffective in the gems case. We further explore the theoretical and practical appeal of m arket …
Persistent link: https://www.econbiz.de/10008838639
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Adverse selection, heterogeneous beliefs, and evolutionary learning
Buchen, Clemens; Palermo, Alberto - 2021
We relax the common assumption of homogeneous beliefs in principal-agent relationships with adverse selection. Principals are competitors in the product market and write contracts also on the base of an expected aggregate. The model is a version of a cobweb model. In an evolutionary learning...
Persistent link: https://www.econbiz.de/10012607986
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When trust fades... : can optimal mechanisms for policy decisions always be designed?
Major, Iván - 2013
Governments must usually take policy decisions with an imperfect knowledge of the economic actors' type or the actors' effort level. These issues are addressed within the framework of classic adverse selection or moral hazard models. I discuss in this paper how would the government’s and the...
Persistent link: https://www.econbiz.de/10010211955
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Incentive Compatibility and Differentiability New Results and Classic Applications
Mailath, George J.; von Thadden, Ernst-Ludwig - 2013
We provide several generalizations of Mailath's (1987) result that in games of asymmetric information with a continuum of types incentive compatibility plus separation implies differentiability of the informed agent's strategy. The new results extend the theory to classic models in finance such...
Persistent link: https://www.econbiz.de/10010334081
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Dynamic markets for lemons: performance, liquidity, and policy intervention
Moreno, Diego; Wooders, John - In: Theoretical Economics 11 (2016) 2, pp. 601-639
We study non-stationary dynamic decentralized markets with adverse selection in which trade is bilateral and prices are determined by bargaining. Examples include labor markets, housing markets, and markets for financial assets. We characterize equilibrium, and identify the dynamics of...
Persistent link: https://www.econbiz.de/10011599579
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Cycling and Categorical Learning in Decentralized Adverse Selection Economies
Jehiel, Philippe; Mohlin, Erik - 2021
We study learning in a decentralized pairwise adverse selection economy, where buyers have access to the quality of traded goods but not to the quality of non- traded goods. Buyers categorize ask prices in order to predict quality as a function of ask price. The categorization is endogenously...
Persistent link: https://www.econbiz.de/10013208902