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Robustness of Reputation Effects under Uncertain Monitoring

Yang, Geyu - 2018

I study reputation effects under uncertain monitoring. I examine a repeated game between a long-run player and a series … uncertainty about the monitoring structure introduces new challenges to reputation building because there may not be a direct … ability to establish a reputation for commitment. I show that, when the short-run players cannot statistically distinguish …

Persistent link: https://www.econbiz.de/10012909525

Risk and Repeated Games : Is Random Termination a Reasonable Proxy For Discounting?

Candreva, Christopher - 2019

This paper looks to see if departures from risk neutrality cause subjects to behave differently in randomly terminated supergames compared to infinitely discounted supergames. I show that if subjects have a strictly monotonic utility function, and that utility function is applied to their entire...

Persistent link: https://www.econbiz.de/10012901787

A model of quality uncertainty with a continuum of quality levels

Gertz, Christopher - 2014 - This version: September 3, 2014

This work takes a closer look on the predominant assumption in usual lemon market models of having finitely many or even only two different levels of quality. We model a situation which is close to the classical monopolistic setting but admits an interval of possible quality values....

Persistent link: https://www.econbiz.de/10010403068

Crises and rating agencies : on the effect of aggregate uncertainty on rating agencies' incentives to distort ratings

Loerke, Petra; Niedermayer, Andreas - 2015

We analyze a rating agency's incentives to distort ratings in a model with a monopolistic profit maximizing rating agency, a continuum of heterogeneous firms, and a competitive market of risk-neutral investors. Firms sell bonds, the value of a firm's bond is known to the firm and observable by...

Persistent link: https://www.econbiz.de/10011345759

Uncertainty about the fundamentals and the occurrence of sudden stops of capital flows : theory and empirics

Köhler-Geib, Fritzi - 2006

We analyse the effect of the uncertainty about the fundamentals on the probability of sudden stops of capital flows from a theoretical and empirical perspective. Our model predicts that the probability of crises increases with the uncertainty, ie. the dispersion of private signals about the true...

Persistent link: https://www.econbiz.de/10009746213

Quality uncertainty with imperfect information acquisition

Gertz, Christopher - 2013 - This version: September 17, 2013

I analyze a monopolistic model of quality uncertainty but with the possibility of information acquisition on the consumer side. Information is costly and its amount is chosen by the consumer. The analysis of Bayesian equilibria shows the possibility of three equilibrium classes, only one of...

Persistent link: https://www.econbiz.de/10009793534

Investment under Uncertainty and Correlated Privately Known Costs

Dehghani, Mohammad Hossein - 2019

This paper studies the behavior of two firms after a new investment opportunity arises. Examples of such an investment are technology adoption or market entry. Firms either invest immediately or wait until market uncertainty is resolved. Two types of separating equilibrium are possible when...

Persistent link: https://www.econbiz.de/10012905574

Rational Delay of Effort in Projects with Uncertain Requirements

Külpmann, Philipp - 2018

We analyze a dynamic moral hazard problem in teams with imperfect monitoring in continuous time. In the model, players are working together to achieve a breakthrough in a project while facing a deadline. The effort needed to achieve a breakthrough is unknown but players have a common prior about...

Persistent link: https://www.econbiz.de/10012937113

Diffusing Coordination Risk

Basak, Deepal - 2020

passes the latest test. We apply our theory to show that by sufficiently diffusing the rollover choices across different …

Persistent link: https://www.econbiz.de/10012854068

Reducing Buyers’ Uncertainty About Taste-Related Product Attributes

Markopoulos, Panos - 2014

It is becoming increasingly important for firms to know when to take steps to reduce buyers' uncertainty about their products and services. This article focuses on investments that firms can make to reduce buyers' uncertainty about taste-related product attributes. Using an analytical model, we...

Persistent link: https://www.econbiz.de/10013050384

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