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The problem of optimally designing information for multiple agents who interact in a game can be formulated as a linear program. We explore its dual representation and show that it provides a novel perspective and new economic insights into the information-design problem. Through the lens of the...
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A Principal has a set of projects, each having different benefit potentials, and each requiring a basic technology from one of two experts and time inputs from both experts. Experts enjoy motivation utilities from production, but have private information of their own motivation preferences and...
Persistent link: https://www.econbiz.de/10012933224
This paper studies an allocation problem in which a welfare-maximizing planner needs to allocate two objects to two agents who are initially uninformed of their valuations of the objects. The planner controls both the in- formation accessible to the agents and the process by which it is...
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Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study how different entry modes affect the interest rate for loans in a model in which domestic banks possess private information about their incumbent clients but foreign banks have...
Persistent link: https://www.econbiz.de/10011604699
We study firms' incentives to acquire private information in a setting where subsequent competition leads to firms' later signaling their private information to rivals. Due to signaling, equilibrium prices are distorted, and so while firms benefit from obtaining more precise private information,...
Persistent link: https://www.econbiz.de/10011548620
We introduce three types of consumer recognition: identity recognition, asymmetric preference recognition, and symmetric preference recognition. We characterize price equilibria and compare profits, consumer surplus, and total welfare. Asymmetric preference recognition enhances profits compared...
Persistent link: https://www.econbiz.de/10009232398
database from rating agencies, covering 379 for-profit and nonprofit microfinance institutions (MFIs) in 67 countries over 2002 …
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