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stop making concessions but switch back to conceding at the end, or a deadlock, in which concessions end permanently …. Extending the deadline hurts the players in the first case but is beneficial in the second. When the initial conflict between …
Persistent link: https://www.econbiz.de/10011599465
contest is unfair regardless of disclosure decisions. Under this condition, full revelation is the unique perfect Bayesian … equilibrium outcome of the contest with pre-play communication. This is so because the weakest type of the underdog will try to … moderate the favorite, while the strongest type of the favorite will try to discourage the underdog - so that the contest …
Persistent link: https://www.econbiz.de/10011969190
Can comparative statements be credible even when absolute statements are not? For instance, can a professor credibly rank different students for a prospective employer even if she has an incentive to exaggerate the merits of each student? Or can an analyst credibly rank different stocks even if...
Persistent link: https://www.econbiz.de/10010263292
This paper contributes to the economics of financial institutions risk management by exploring how loan securitization affects their default risk, their systematic risk, and their stock prices. In a typical CDO transaction a bank retains through a first loss piece a very high proportion of the...
Persistent link: https://www.econbiz.de/10010266932
With the changing economic circumstances confronting their countries, regionally concentrated minorities have been facing a strategic problem, important aspects of which can be stylized as a situation in which a minority leader is uncertain about the costs of secession for her community. This...
Persistent link: https://www.econbiz.de/10010277482
This paper proposes an explanation as to why some mergers fail, based on the interaction between the pre-merger gathering of information and the postmerger integration processes. Rational managers acting in the interest of shareholders may still lead their firms into unsuccessfully integrated...
Persistent link: https://www.econbiz.de/10010278138
I study sequential contests where the efforts of earlier players may be disclosed to later players by nature or by design. The model has many applications, including rent seeking, R&D, oligopoly, public goods provision, and tragedy of the commons. I show that information about other players'...
Persistent link: https://www.econbiz.de/10014536866
Activist NGOs increasingly oppose industrial projects that have nevertheless been approved by public regulators. To understand this recent rise in NGO activism, we develop a theory of optimal regulation in which a regulated industry seeks to undertake a project that may be harmful to society. On...
Persistent link: https://www.econbiz.de/10011480474
-pay contests. Provided that the contest is uniformly asymmetric, full revelation is the unique perfect Bayesian equilibrium outcome … favorite will try to discourage the underdog - so that the contest unravels. Self-disclosure is optimal even though a weak …
Persistent link: https://www.econbiz.de/10012420693
The energy transition increases the demand for minerals from ethnically diverse, conflict-prone developing countries …. We study whether and where mining is possible in such countries without raising the risk of civil conflict. We proceed in … three steps: First, we propose a theoretical model to predict the occurrence and location of conflict events on the …
Persistent link: https://www.econbiz.de/10014290117