Showing 1 - 10 of 1,552
This paper creates a game theoretic model to determine how pendulum arbitration or baseball arbitration impacts the incentives of litigants. Pendulum arbitration is when both parties submit competing proposals and the arbitrator chooses only one of the bids, in its entirety, to be binding on...
Persistent link: https://www.econbiz.de/10014043074
A group of actors, individuals or firms, can engage in collectively providing projects which may be costly or generating revenues and which may benefit some and harm others. Based on requirements of procedural fairness (Güth and Kliemt, 2013), we derive a bidding mechanism determining...
Persistent link: https://www.econbiz.de/10009736802
We analyze a simple sequential algorithm (SA) for allocating indivisible items that are strictly ranked by n ≥ 2 players. It yields at least one Pareto-optimal allocation which, when n = 2, is envy-free unless no envy-free allocation exists. However, an SA allocation may not be maximin or...
Persistent link: https://www.econbiz.de/10014036936
We study the voluntary provision of a discrete public good via the contribution game. Players independently and simultaneously make nonrefundable contributions to fund a discrete public good, which is provided if and only if the contributions are at least as great as the cost of production. We...
Persistent link: https://www.econbiz.de/10014051626
We consider innovation contests for the procurement of an innovation under moral hazard and adverse selection. Innovators have private information about their abilities, and choose unobservable effort in order to produce innovations of random quality. Innovation quality is not contractible. We...
Persistent link: https://www.econbiz.de/10014197603
Seed fundraising for ventures often takes place by sequentially approaching potential contributors, who make observable decisions. The fundraising succeeds when a target number of investments is reached. Though resembling classic information cascades models, its behavior is radically different,...
Persistent link: https://www.econbiz.de/10013234875
Based on the "acquiring-a-company" game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of...
Persistent link: https://www.econbiz.de/10010253149
Based on the "acquiring-a-company" game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of...
Persistent link: https://www.econbiz.de/10010240604
Based on the acquiring-a-company game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of...
Persistent link: https://www.econbiz.de/10010487717
We analyze an all-pay group contest problem in which individual members' efforts are aggregated via the best-shot technology and the prize is a public good for the winning group. The interplay of within-group free-riding and across-group competition allows for a wide variety of equilibria,...
Persistent link: https://www.econbiz.de/10013076090