We analyze a principal-agent model in which a principal has two possibilities to improve his knowledge about the quality of an investment project. First, he has access to an informationtechnology that provides a \textit{verifiable}, unbiased signal. Second, he can hire an agent who detects bad...

In a laboratory experiment, we investigate the impact of temporary buy-options on efficiency, revenues, and bidding behavior in online proxy-auctions when bidders have independent private valuations. We show that the introduction of a buy-option reduces efficiency and at the same time fails to...

Based on the Expectancy Disconfirmation Model as the underlying construct, methods to measure customer satisfaction with products and the steps to be undertaken in the research process are investigated. The measurement of Derived Satisfaction using (dis)confirmation was identified to be the...

In drawing on modern finance theory, this note demonstrates the importance of financial instruments for large public sector projects. An explicit link to the theory of Henry George is made, and a public sector financing approach is being demonstrated by using the example of the Oder floodings in...

In this paper we develop a model to describe a firm’s demand for two production factors which is subject to the presence of nonconvex adjustment costs. In our model simultaneous adjustment of these two production factors may either increase or decrease the total costs incurred by the firm. The...

A state, for instance a health state, is characterized by a number of attributes to each of which a level is assigned. A specific collection of numerical values, for instance utilities, for all possible states is called a situation. The main purpose of the paper is to develop a class of methods...

The purpose of this comment is to demonstrate that their theoretical result concerning the first order derivative of relative inflation persistence with respect to the degree of accommodation is incorrect. As a consequence, the sign of the first derivative becomes ambiguous. We provide an...

When the asset market is incomplete, competitive equilibria are constrained suboptimal, which provides scope for Pareto improving interventions. Price regulation can be such a Pareto improving policy, even when the welfare effects of rationing are taken into account. An appealing aspect of price...

We estimate corporate average effective tax rates from financial statements for companies domiciled in European Union (EU) member states during 7 years from 1990 to 1996. Our objective is to compare the tax rate effectively experienced by companies with the corporate statutory tax rate in the EU...

The goal of this paper is twofold. Firstly a short proof of the unicity of the reduced form of a normal form game is provided, using a technique to reduce a game originally introduced by Mertens. Secondly a direct combinatorial-geometric interpretation of the reduced form is described. This...