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The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment

Schunk, Daniel; Winter, Joachim - 2007

Experimental studies of search behavior suggest that individuals stop searching earlier than predicted by the optimal, risk-neutral stopping rule. Such behavior could be generated by two different classes of decision rules: rules that are optimal conditional on utility functions departing from...

Persistent link: https://www.econbiz.de/10010427494

The Effect of Bank Competition on the Bank's Incentive to Collateralize

Hainz, Christa - 2007

It has been argued that competing banks make inefficiently frequent use of collateralization in situations where they are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and collateralization in a model where banks do not have this...

Persistent link: https://www.econbiz.de/10010427497

Measuring real value and inflation

Hillinger, Claude - 2007

derive these measures are largely unsatisfactory. The axiomatic theory of indexes does not make clear which economic problem …. For example, the theory of the CPI is usually developed for a single consumer with homothetic preferences and then applied … to a large aggregate of diverse consumers with non-homothetic preferences. In this paper I develop a unitary theory that …

Persistent link: https://www.econbiz.de/10010427498

Measurement in Economics and Social Science

Hillinger, Claude - 2007

separation of theory from the quantitative measures that are computed in practice: price and quantity indexes, consumer surplus … embedded in a satisfactory economic theory, free from unreasonable restrictions. It is the Törnqvist index as an approximation …

Persistent link: https://www.econbiz.de/10010427500

Central Bank's Action and Communication

Baeriswyl, Romain - 2007

This paper contributes to the ongoing debate about the welfare effect of public information. In an environment characterized by imperfect common knowledge and strategic complementarities, Morris and Shin (2002)argue that noisy public information may be detrimental to welfare because public...

Persistent link: https://www.econbiz.de/10010427503

An Empirical Test of the Reder Hypothesis

Ludsteck, Johannes; Haupt, Harald - 2007

A firm that faces insufficient supply of labor can either increase the wage offer to attract more applicants, or reduce the hiring standard to enlarge the pool of potential employees, or do both. This simultaneous adjustment of wages and hiring standards in response to changes in market...

Persistent link: https://www.econbiz.de/10010427507

Creditor Passivity: The Effects of Bank Competition and Institutions on the Strategic Use of Bankruptcy Filings

Hainz, Christa - 2007

Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information about a firm’s type to its competitors. Thereby,...

Persistent link: https://www.econbiz.de/10010427508

Communication, cooperation and collusion in team tournaments - An experimental study

Sutter, Matthias; Strassmair, Christina - 2007

We study the effects of communication in an experimental tournament between teams. When teams, rather than individuals, compete for a prize there is a need for intra-team coordination in order to win the inter-team competition. Introducing communication in such situations may have ambiguous...

Persistent link: https://www.econbiz.de/10010427509

Equal Sharing Rules in Partnerships

Bartling, Björn; Siemens, Ferdinand von - 2007

Partnerships are the prevalent organizational form in many industries. Most partnerships share profits equally among the partners. Following Kandel and Lazear (1992) it is often argued that ``peer pressure'' mitigates the arising free-rider problem. This line of reasoning takes the equal sharing...

Persistent link: https://www.econbiz.de/10010427510

Why were FIFA World Cup Tickets so cheap? Monopoly Pricing, Demand Quality and Two-Sided Markets

Eichhorn, Christoph; Sahm, Marco - 2007

We examine the pricing decision of a multi-product monopolist in a two-sided market where the type structure of buyers on one side of the market is an important determinant of profit on the other side. In this situation it might be optimal to set prices below the maximum sellout price and to...

Persistent link: https://www.econbiz.de/10010427511