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Bilateral trade with a benevolent intermediary

Eilat, Ran; Pauzner, Ady - In: Theoretical economics : TE ; an open access journal in … 16 (2021) 4, pp. 1655-1714

We study intermediaries who seek to maximize gains from trade in bilateral negotiations. Intermediaries are players: they cannot commit to act against their objective function and deny, in some cases, trade they believe to be beneficial. This impairs their ability to assist the parties relative...

Persistent link: https://www.econbiz.de/10012806593

Sweet lemons : mitigating collusion in organizations

Pollrich, Martin; Negenborn, Colin von - 2018

This paper shows that the possibility of collusion between an agent and a supervisor imposes no restrictions on the set of implementable social choice functions (SCF) and associated payoff vectors. Any SCF and any payoff profile that are implementable if the supervisor's information was public...

Persistent link: https://www.econbiz.de/10011902729

Mechanism design with aftermarkets : on the optimality of cutoff mechanisms

Dworczak, Piotr - 2016

I study a mechanism design problem of allocating a single good to an agent when the mechanism is followed by a post-mechanism game (aftermarket) played between the agent and a third-party. The aftermarket is beyond the direct control of the designer. However, she can influence the information...

Persistent link: https://www.econbiz.de/10011865063

Mechanism design with aftermarkets : on the impossibility of pure information intermediation

Dworczak, Piotr - 2016

A mediator, with no prior information and no control over the market protocol, attempts to redesign the information structure in the market by running an information intermediation mechanism with transfers that first elicits information from an agent, and then discloses information to another...

Persistent link: https://www.econbiz.de/10011865067

Dynamic contracting : an irrelevance theorem

Eső, Péter; Szentes, Balàzs - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 1, pp. 109-139

This paper generalizes a conceptual insight in dynamic contracting with quasilin- ear payoffs: the principal does not need to pay any information rents for extract- ing the agent’s “new” private information obtained after signing the contract. This is shown in a general model in which the...

Persistent link: https://www.econbiz.de/10011704662

Limited higher order beliefs and the welfare effects of public information

Cornand, Camille; Heinemann, Frank - 2013

In games with strategic complementarities, public information about the state of the world has a larger impact on equilibrium actions than private information of the same precision, because the former is more informative about the likely behavior of others. This may lead to welfare-reducing...

Persistent link: https://www.econbiz.de/10009787097

Frictional asset reallocation under adverse selection

Madison, Florian - 2018

The aim of this paper is to study asset reallocation in financial markets subject to search, bargaining, and … consequence, a positive liquidity differential between money and real assets emerges, resulting in an increased demand for fiat … money, as observed since the eruption of the global financial crisis. A policy intervention replacing information sensitive …

Persistent link: https://www.econbiz.de/10011969185

Money Is the Root of Asset Bubbles

Awaya, Yu; Iwasaki, Kohei; Watanabe, Makoto - 2024

not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing …

Persistent link: https://www.econbiz.de/10014534470

On Money As a Latent Medium of Exchange

Lagos, Ricardo - 2019

We formulate a generalization of the traditional medium-of-exchange function of money in contexts where there is … that the option to settle transactions directly with money strengthens the stance of sellers of goods and services vis … latent money demand considerations imply monetary policy remains effective through medium-of-exchange channels even if the …

Persistent link: https://www.econbiz.de/10012868450

Money is the root of asset bubbles

Awaya, Yu; Iwasaki, Kohei; Watanabe, Makoto - 2024

not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing …

Persistent link: https://www.econbiz.de/10014467370