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We report on an experiment on decentralized markets in the presence of adverse selection. When allowing for costless and non-binding communication (cheap-talk), there exists a partially separating equilibrium that results in a substantially higher efficiency level than the adverse selection...
Persistent link: https://www.econbiz.de/10012969275
higher in mixed groups. Conditional on lying, men tend to state bigger lies than women. On the other hand, women tend to tell … smaller lies when paired with men than when paired with women. In general, women present higher acceptance rates than men …
Persistent link: https://www.econbiz.de/10013013163
We study a market with entrepreneurial and workers entry where both entrepreneurs' abilities and workers' qualities are private information. We develop an Agent-Based Computable model to mimic the mechanisms described in a previous analytical model (Boadway and Sato 2011). Then, we introduce the...
Persistent link: https://www.econbiz.de/10011982041
This paper analyzes the effects of taxation on information acquisition and bilateral trade in decentralized markets. We …
Persistent link: https://www.econbiz.de/10010471910
This paper shows that a transaction tax makes trades in decentralized markets more information sensitive and enlarges the range of information costs for which the equilibrium exhibits private information acquisition and endogenous adverse selection. A transaction tax reduces the probability of...
Persistent link: https://www.econbiz.de/10013259519
Persistent link: https://www.econbiz.de/10010198463
in the ensuing interactions, unless the evaluators have been explicitly instructed to watch out for lies. These results …
Persistent link: https://www.econbiz.de/10011441641
We report results from a sender-receiver deception game, which tests whether an individual's decision to deceive is … order to obtain a higher payoff. A sender is positively biased if he thinks that he is higher in the deception distribution … information about the deception of his peers. The experimental data confirm this. We conclude that concern for relative standing …
Persistent link: https://www.econbiz.de/10010404042
Our market experiment investigates the extent to which traders learn from the price, differentiating between situations where orders are submitted before versus after the price has realized. When market participants have to submit their bids conditional on the price, they show a bias by reacting...
Persistent link: https://www.econbiz.de/10011280005
equilibrium can arise. More importantly, the equilibrium is crucially affected by corporate taxation. Given these results, we also …
Persistent link: https://www.econbiz.de/10010347029