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Government R&D subsidies as a signal for private investors
Kleer, Robin - 2008 - Preliminary Version
investments. -- subsidies ; innovation ; asymmetric information ; signaling …Government subsidies for R&D are intended to promote projects with high returns to society but too little private … a simple signaling model with different types of R&D projects to capture this phenomenon. In a setup where the subsidy …
Persistent link: https://www.econbiz.de/10009746782
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Optimal short-time work : screening for jobs at risk
Teichgräber, Julian; Žužek, Simon; Hensel, Jannik - 2022
Short-time work - a wage subsidy conditional on hour reductions - has become an important tool of labor market policy in many European countries. As the scope of these policies expanded, concerns about side effects due to adverse selection increased. We develop a model of job retention policies...
Persistent link: https://www.econbiz.de/10012815443
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Incentives and tranche retention in securitisation : a screening model
Fender, Ingo; Mitchell, Janet - 2009
This paper examines the power of different contractual mechanisms to influence an originator's choice of costly effort to screen borrowers when the originator plans to securitise its loans. The analysis focuses on three potential mechanisms: the originator holds a "vertical slice", or share of...
Persistent link: https://www.econbiz.de/10011597154
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Frictional asset reallocation under adverse selection
Madison, Florian - 2018 - Revised version
The aim of this paper is to study asset reallocation in financial markets subject to search, bargaining, and information frictions, and to analyze the impact of monetary policy on equilibrium outcomes. The main results show that private information regarding the quality of an asset impairs its...
Persistent link: https://www.econbiz.de/10011790391
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Who should pay for certification?
Stahl, Konrad; Strausz, Roland - 2010
Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer or the seller? Our answer ' the seller ' follows from a non-trivial analysis revealing a clear intuition. Buyer-induced certification acts as an inspection device, whence...
Persistent link: https://www.econbiz.de/10003975228
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Due diligence, research joint ventures, and incentives to innovate
Fabrizi, Simona; Lippert, Steffen - 2011
The decision to cooperate within R&D joint ventures is often based on expert advice such advice typically originates in a due diligence process, which assesses the R&D joint ventures profitability, for example, by appraising the achievability of synergies. We show that if the experts who advise...
Persistent link: https://www.econbiz.de/10009409623
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Signaling versus costly information acquisition
Bester, Helmut; Lang, Matthias; Li, Jianpei - 2018
In Spence's (1973) signaling by education model and in many of its extensions, firms can only infer workers …' productivities. We characterize the trade-offs between signaling by workers and costly information acquisition by firms. Information … workers have low productivity. Our analysis applies also to other signaling problems, e.g. the financial structure of firms …
Persistent link: https://www.econbiz.de/10011888619
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Umbrella branding and the provision of quality
Hakenes, Hendrik; Peitz, Martin - 2006
Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
Persistent link: https://www.econbiz.de/10010365881
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Signaling with private monitoring
Cisternas, Gonzalo; Kolb, Aaron - 2021
We study dynamic signaling when the informed party does not observe the signals generated by her actions. A forward …
Persistent link: https://www.econbiz.de/10012797860
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Optimal redistribution in the presence of signaling
Bastani, Spencer; Blumḳin, Tomer; Micheletto, Luca - 2021
We analyze optimal redistribution in the presence of labor market signaling where innate productive ability is not only … unobserved by the government, but also by prospective employers. Signaling in both one and two dimensions is considered, where in …
Persistent link: https://www.econbiz.de/10012599061