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An uninformed sender designs a mechanism that discloses information about her type to a privately informed receiver … willing to act. Using a linear programming approach, I characterize optimal information disclosure and provide conditions … not monotonic in the precision of the receiver's private information. …
Persistent link: https://www.econbiz.de/10011856702
Persistent link: https://www.econbiz.de/10001141735
The current paper defines the optimal sequential information gathering structure of a rational utility maximizer … of information from a set of multidimensional goods. We show how this problem, hardly ever considered in the literature …, does not admit a simple or intuitive solution. Indeed, while the standard sequential search and information gathering …
Persistent link: https://www.econbiz.de/10014166100
does so at the price of sub-optimal decision solution truncating vital non-linear information ordinarily accounted for by …
Persistent link: https://www.econbiz.de/10013103795
Expected consumer's surplus rarely represents preferences over price lotteries. Still, I give sufficient conditions for policies which maximize aggregate expected surplus to be interim Pareto Optimal. Besides two standard partial equilibrium conditions, I assume that feasible prices satisfy a...
Persistent link: https://www.econbiz.de/10013064210
In ordinal (probabilistic) assignment problems, each agent reports his preference rankings over objects and receives a lottery defined over those objects. A common efficiency notion, sd-efficiency, is obtained by extending the preference rankings to preferences over lotteries by means of...
Persistent link: https://www.econbiz.de/10012993968
We allocate objects to agents as exemplified primarily by school choice. Welfare judgments of the object-allocating agency are encoded as edge weights in the acceptability graph. The welfare of an allocation is the sum of its edge weights. We introduce the constrained welfare-maximizing...
Persistent link: https://www.econbiz.de/10012212842
This paper finds the optimal consumption and asset allocation strategy for an Australian retiree who aims to maintain a level of minimum consumption. I use a discrete dynamic programming algorithm, with historical stock return distribution and a regime switching investment model, while taking...
Persistent link: https://www.econbiz.de/10013138984
I/B/E/S removes 6% of one-quarter-ahead earnings forecasts from the calculation of the consensus forecast. This study examines managers' role in these removals. We show optimistic forecasts are removed more often than pessimistic forecasts, after controlling for removal policies that I/B/E/S...
Persistent link: https://www.econbiz.de/10012898780
We provide a technique for constructing optimal multiattribute screening contracts in a general setting with one-dimensional types based on necessary optimality conditions. Our approach allows for type-dependent participation constraints and arbitrary risk profiles. As an example we discuss...
Persistent link: https://www.econbiz.de/10012978605