Showing 1 - 10 of 12,943
Persistent link: https://www.econbiz.de/10001399038
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
Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast to the previous literature on costly state verification, which has shown that it is optimal to commit to an auditing strategy, as the credible announcement of thoroughly auditing...
Persistent link: https://www.econbiz.de/10003971534
theory. Our unified reputation framework theoretically allows for either the good or the bad reputation prediction to emerge …We experimentally test whether the possibility of building a reputation impacts behavior in the manner suggested by …. Our design additionally varies whether reputation building is possible or not by making the past choices of the long run …
Persistent link: https://www.econbiz.de/10012733116
Electronic reputation or feedback mechanisms aim to mitigate the moral hazard problems associated with exchange among …
Persistent link: https://www.econbiz.de/10014066626
information informal reputation mechanisms need transmit. Models based on subgame perfection find that the information necessary … modest. The experiment we present indicates that even without any reputation information there is a non-negligible amount of …'s immediate past action increases cooperation. Recursive information about the partners' previous partners' reputation further …
Persistent link: https://www.econbiz.de/10014225363
A theoretical model is adopted in order to explain incentives and actual safety behaviour for drivers, pedestrians and other road users which do not utilise motorised vehicles. A road user's outcome is supposed to be dependent on her individual actions and cares decided upon by other individuals...
Persistent link: https://www.econbiz.de/10001646561
In economics, the standard approach to language is that talk is cheap. Here, instead, language is a social convention that affects utility. Unless language is used in its ordinary sense, it cannot help to coordinate actions because there is no way of decoding it. This points to a unique...
Persistent link: https://www.econbiz.de/10008903436
This paper examines the ability of a policy maker to control equilibrium outcomes in a global coordination game; applications include currency attacks, bank runs, and debt crises. A unique equilibrium is known to survive when the policy is exogenously fixed. We show that, by conveying...
Persistent link: https://www.econbiz.de/10003779286
We study how a decision maker uses his reputation to simultaneously influence the actions of multiple receivers with … heterogenous biases. The reputational payoff is single-peaked around a bliss reputation at which the incentives of the average … receiver are perfectly aligned. We evidence two equilibria characterized by repositioning towards this bliss reputation that …
Persistent link: https://www.econbiz.de/10012936837