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A single seller faces a sequence of buyers with unit demand. The buyers are forward-looking and long-lived. Each buyer has private information about his arrival time and valuation where the latter evolves according to a geometric Brownian motion. Any incentive-compatible mechanism has to induce...
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thus far puzzling use of non-linear incentives, for example in sales-force compensation. The result is obtained by …
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design I prove in the paper, that government - as principal - is only capable of applying "perverse" incentives towards the …
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an AR(k) process. -- asymmetric information ; stochastic processes ; incentives …
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