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Should Regulators Be More Proactive About Entry? An Evaluation under Asymmetric Information

SARMENTO, PAULA; BRANDグ, ANTモNIO - In: Hitotsubashi Journal of Economics 53 (2012) 1, pp. 71-84

We compare the costs oftwo regulatory policies about the entry ofnew firms. We consider an incumbent firm that has more information about the market demand than the regulator and can use this advantage to persuade the regulator to make entry more difficult. With the first regulatory policy the...

Persistent link: https://www.econbiz.de/10011106496

The Contribution of the FIFA World Cup and the Olympic Games to Green Economy

Preuss, Holger - In: Sustainability 5 (2013) 8, pp. 3581-3600

by their signaling power and educational opportunities. …

Persistent link: https://www.econbiz.de/10011030327

Investment busts, reputation, and the temptation to blend in with the crowd

Grenadier, Steven R.; Malenko, Andrey; Strebulaev, Ilya A. - In: Journal of Financial Economics 111 (2014) 1, pp. 137-157

We provide a real-options model of an industry in which agents time abandonment of their projects in an effort to protect their reputations. Agents delay abandonment attempting to signal quality. When a public common shock forces abandonment of a small fraction of projects irrespective of...

Persistent link: https://www.econbiz.de/10011039201

Participating convertible preferred stock in venture capital exits

Arcot, Sridhar - In: Journal of Business Venturing 29 (2014) 1, pp. 72-87

This paper develops a theory of the participating convertible preferred (PCP) stock commonly used in venture capital settings. I show that the participation and convertibility features of PCP stock can be used to reduce information asymmetry between the venture and potential investors at the...

Persistent link: https://www.econbiz.de/10011040311

Communicating excellence in innovation

Nicolau, Juan Luis; Santa-María, María Jesús - In: Economics Letters 118 (2013) 1, pp. 87-90

The innovation–performance relationship is well studied in the literature, but the effect of innovation-based public recognitions is underresearched. This article finds a positive effect, whose magnitude is contingent upon the firm’s growth, experience, and its service–manufacturer character.

Persistent link: https://www.econbiz.de/10011041602

Persuasion and learning by countersignaling

Chung, Kim-Sau; Eső, Péter - In: Economics Letters 121 (2013) 3, pp. 487-491

We model countersignaling (i.e., very high types refraining from signaling) arising from the tradeoff between … persuasion and learning in a signaling game. We assume that the agent has imperfect private information regarding his …/her productivity, which the signaling action provides additional verifiable information about. A higher-type agent benefits more from …

Persistent link: https://www.econbiz.de/10011041613

Asymmetric information may protect the commons: The welfare benefits of uninformed regulators

Espínola-Arredondo, Ana; Muñoz-García, Félix - In: Economics Letters 121 (2013) 3, pp. 463-467

We examine an entry-deterrence model in the commons. We investigate in which contexts asymmetric information among firms becomes welfare improving, and in which settings an uninformed regulator may prefer to assess and disseminate information about the available stock among firms.

Persistent link: https://www.econbiz.de/10011041645

The Signaling Role of Note Being Promoted: Theory and Evidence

Jin, Xin - Volkswirtschaftliche Fakultät, … - 2014

This article studies the negative signals associated with non-promotion. I first show theoretically that, when workers’ productivity rises little with additional years on the same job level, the negative signal associated with non-promotion leads to wage decreases. On the other hand, when...

Persistent link: https://www.econbiz.de/10011108717

An exploration of the promotion signaling distortion

Waldman, Michael; Zax, Ori - Volkswirtschaftliche Fakultät, … - 2014

this paper we explore two related issues. First, how robust is the finding of a promotion signaling distortion to different … ways of modeling the promotion process? Second, what are the various forms that the promotion signaling distortion can take …? Our first conclusion is that a promotion signaling distortion exists across a wide range of settings, including some for …

Persistent link: https://www.econbiz.de/10011109838

The predominant role of signal precision in experimental beauty contests

Zylbersztejn, Adam - Groupe d'Analyse et de Théorie Économique Lyon … - 2014

strategic signaling. The other involves aversion to others’ expressed disapproval. The presence of feedback is found to foster … pro-social behavior. The data favour the non-monetary sanctioning explanation rather than the signaling hypothesis. …

Persistent link: https://www.econbiz.de/10011161032