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backfires as special agents extract significantly more resources. Introducing a peer punishment mechanism sustains contributions … stigmatization effect for the special agent as he receives substantially more peer punishment while contributions by other agents do … not change. Finally full transparency of all agents actions creates full accountability as it allows targeted punishment …
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The possibility of adverse selection by training firms is common theoretical argument for company-sponsored investments in general skills. The paper derives a public and a private signal after apprenticeship training and shows that training firms are able to positively select graduates they...
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The ex ante theory of collateral states that better informed lenders, such as informal lenders, rely less on collateral …
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Consumption patterns can be indicative of how a consumer wants to be perceived by others. In this paper, I study markets where consumers are heterogeneous with respect to both their concerns for the quality of goods and the image associated with buying them. Consumers with a taste for quality...
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We investigate the formation of market prices in a new experimental setting involving multi-period asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and (2) the provision of...
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CESifo Seminar Series "Competitive Failures in Insurance Markets Theory and Policy Implications" edited by Pierre …
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