Showing 251 - 260 of 24,219
In this paper we survey the theoretical and empirical literatures on market liquidity. We organize both literatures around three basic questions: (a) how to measure illiquidity, (b) how illiquidity relates to underlying market imperfections and other asset characteristics, and (c) how...
Persistent link: https://www.econbiz.de/10014025359
This paper extends the results in Hidvegi et al. (2006) to the case when the number of bidders is common knowledge in an English auction with buy-out. In that case when some bidders drop out, the remaining bidders have to update their information, and change the threshold auction price at which...
Persistent link: https://www.econbiz.de/10014026576
Bargaining over two issues as a bundle permits credible cheap talk about their relative importance even when interests are directly opposed on each issue. The resulting communication gains can exceed the gains from bundling previously identified in the monopoly pricing literature
Persistent link: https://www.econbiz.de/10014033741
In the context of monopolistic nonlinear pricing, we compare the maximum profits of bundling, incremental discounts, and all-units discounts. When the number of pricing blocks is unrestricted, incremental discounts perform weakly the worst. However, if the performance of incremental discounts is...
Persistent link: https://www.econbiz.de/10013114214
We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the real positive line, out-of-equilibrium beliefs need not be specified, i.e., every positive price is a positive outcome in equilibrium. We first study the behavior of the monopoly...
Persistent link: https://www.econbiz.de/10013115026
We provide a new evidence on a potential best way for a microfinance institution (MFI) to alleviate poverty while remaining financially profitable. Results show that equity contract generate more social welfare and profit than debt contract. By becoming a stakeholder in the micro-venture rather...
Persistent link: https://www.econbiz.de/10013118862
A buyer wishes to purchase a good from a seller who chooses a sequence of prices over time. In each period, the buyer can also exercise an outside option such as moving onto another seller. We show there is a unique equilibrium in which the seller charges a constant price in every period equal...
Persistent link: https://www.econbiz.de/10013124871
We propose a novel and tractable equilibrium model to study how information asymmetry, competition among market makers, and investors' risk aversion affect asset pricing, market illiquidity and welfare. The main innovation is that market makers compete through choosing simultaneously quantities...
Persistent link: https://www.econbiz.de/10013146613
In this paper, we compare ad valorem and specific taxation under heterogeneous demand when a monopolist offers a menu of two-part tariffs. An increase in either tax rate leads to a higher usage fee for all consumers, whereas the fixed fee under reasonable assumptions will fall. If the government...
Persistent link: https://www.econbiz.de/10013147723
We study dynamic bargaining with uncertainty over the buyer's valuation and the seller's outside option. A long-lived seller makes offers to a long-lived buyer whose value is private information. There may exist a short-lived buyer whose value is higher than that of the long-lived buyer. The...
Persistent link: https://www.econbiz.de/10013081626