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Recommended readings (Machine generated): J.A. Mirrlees (1971), 'An Exploration in the Theory of Optimum Income … Bidding Games', in Recent Advances in Game Theory (Papers delivered at a meeting of the Princeton University Conference …', Quarterly Journal of Economics, XC (4), November, 599-617 -- George A. Akerlof (1980), 'A Theory of Social Custom, of Which …
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We consider a privately informed issuer which holds a portfolio of assets that can be sold to raise cash, where the fractions of assets sold serve as a multidimensional signal. If good news about one asset is good news for the others, then there is a unique equilibrium that satisfies the...
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We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are distorted above perfect information allocations. By...
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Telemonitoring devices can be used to screen consumers' characteristics and mitigate information asymmetries that lead to adverse selection in insurance markets. However, some consumers value their privacy and dislike sharing private information with insurers. In the second-best efficient...
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