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von Engelhardt, Sebastian - 2008

Software is a good with very special economic characteristics. Taking a general definition of software as its starting-point, this article systematically elaborates the central qualities of the commodity which have implications for its production and cost structure, the demand, the...

Persistent link: https://www.econbiz.de/10010273764

Intellectual property rights and ex-post transaction costs: the case of open and closed source software

von Engelhardt, Sebastian - 2008

The economic characteristics of software and transaction costs explain, why closed source and open source software co-exist. It is about the efficient use of a non- and anti-scarce resource. But because of ex-post transaction costs that lead to information asymmetries, some property rights...

Persistent link: https://www.econbiz.de/10010273765

Modeling optimism and pessimism in the foreign exchange market

de Grauwe, Paul; Kaltwasser, Pablo Rovira - 2007

In this paper we model how the existence of different beliefs about the underlying fundamental value of a currency affects the dynamics of the exchange rate. We find that a divergence of beliefs creates the potential for waves of optimism and pessimism that alternate in an unpredictable way....

Persistent link: https://www.econbiz.de/10010273768

Rules of proof, courts, and incentives

Demougin, Dominique M.; Fluet, Claude - 2007

We analyze the design of legal principles and procedures for court decision-making in civil litigation. The objective is the provision of appropriate incentives for potential tort-feasors to exert care, when evidence about care is imperfect and may be distorted by the parties. Efficiency is...

Persistent link: https://www.econbiz.de/10010273769

Fiscal competition, convergence and agglomeration

Fenge, Robert; von Ehrlich, Maximilian; Wrede, Matthias - 2007

This paper analyzes the impact of fiscal competition through infrastructure in a New Economic Geography framework. It is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost have fallen below a certain value. Moreover, fiscal...

Persistent link: https://www.econbiz.de/10010273770

Taxing sin goods and subsidizing health care

Cremer, Helmuth; de Donder, Philippe; Maldonado, Darío; … - 2008

. The sin good brings pleasure but has a detrimental effect on second period health and individuals tend to underestimate … this effect. In the second period, individuals can devote part of their saving to improve their health status and thus … period health care decision: either individuals acknowledge that they have made a mistake in the first period out of myopia …

Persistent link: https://www.econbiz.de/10010273775

Macroeconomic modeling when agents are imperfectly informed

De Grauwe, Paul - 2008

DSGE-models have become important tools of analysis not only in academia but increasingly in the board rooms of central banks. The success of these models has much to do with the coherence of the intellectual framework it provides. The limitations of these models come from the fact that they...

Persistent link: https://www.econbiz.de/10010273776

Forced saving, redistribution and nonlinear social security schemes

Cremer, Helmuth; de Donder, Philippe; Maldonado, Darío; … - 2008

This paper studies the design of a nonlinear social security scheme in a society where individuals differ in two respects: productivity and degree of myopia. Myopic individuals may not save enough" for their retirement because their myopic self" emerges when labor supply and savings decisions...

Persistent link: https://www.econbiz.de/10010273777

Habit formation and labor supply

Cremer, Helmuth; de Donder, Philippe; Maldonado, Darío; … - 2008

This paper shows that the combination of habit formation - present consumption creating additional consumption needs in the future - and myopia may explain why some retirees are forced to unretire, i.e., unexpectedly return to work. It also shows that when myopia about habit formation leads to...

Persistent link: https://www.econbiz.de/10010273778

Slotting allowances and manufacturers' retail sales effort

Foros, Øystein; Kind, Hans Jarle; Sand, Jan Yngve - 2008

A manufacturer's incentives to undertake non-contractible investments depend on the profit margin on her sales to the retailer, and slotting allowances can facilitate such incentives by increasing unit wholesale prices. At first glance, it is tempting to conclude that slotting allowances should...

Persistent link: https://www.econbiz.de/10010273780