During the recent sales of UMTS licenses in Europe some countries used auctions while others resorted to so-called Beauty Contests. There seems to be a wide consensus among economists that in these and other contexts like privatisation an auction is the better selling mechanism. However, why...

During the recent sales of UMTS licenses in Europe some countries used auctions while others resorted to so-called Beauty Contests. There seems to be a wide consensus among economists that in these and other contexts like privatisation an auction is the better selling mechanism. However, why...

Achim Wambach analysiert die unterschiedlichen Maßnahmen der Klimapolitik und die Marktmechanismen, die dahinter wirken - manchmal gegenteilig oder ganz anders als von der Politik beabsichtigt oder den Verbrauchern erwartet. Dabei kommt er zu überraschenden Ergebnissen: Solaranlagen können...

Using the concept of Inequity Aversion we derive in a Moral Hazard setting several results which differ from conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal contracts. Second, there is a strong tendency towards...