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In Vino Veritas: The Economics of Drinking

Heufer, Jan - 2009

context. There is a tradeoff between the efficiency gains due to the signaling effect and the loss of productivity associated …

Persistent link: https://www.econbiz.de/10010271394

Who should pay for certification?

Stahl, Konrad O.; Strausz, Roland - 2011

Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer or the seller? Our answer - the seller - follows from a nontrivial analysis revealing a clear intuition. Buyer-induced certification acts as an inspection device,...

Persistent link: https://www.econbiz.de/10010274805

Striking Features of the Labor Market

Greene, William H.; Martins, Ana P. - 2002

´s willingness to participate in a strike. We develop and compare two signaling models of strikes: in one, firms are able to monitor …

Persistent link: https://www.econbiz.de/10011496031

Employee stock options

Børsum, Øystein - 2010

An entrepreneur with information about firm quality seeks financing from an uninformed investor in order to pay a worker. I show that if the worker, too, knows the true quality of the firm, then certain long term wage agreements can credibly signal firm quality. Such wage agreements have a low...

Persistent link: https://www.econbiz.de/10010285589

The price of advice

Esö, Péter (contributor); Szentes, Balàzs (contributor) - 2004

We develop a model of consulting (advising) where the role of the consultant is that she can reveal signals to her client which refine the client’s original private estimate of the profitability of a project. Importantly, only the client can observe or evaluate these signals, the consultant...

Persistent link: https://www.econbiz.de/10003780868

Signalling with career concerns

Chung, Kim-sau (contributor); Eső, Péter (contributor) - 2007

Consider an agent (manager, artist, etc.) who has imperfect private information about his productivity. At the beginning of his career (period 1, short runʺ), the agent chooses among publicly observable actions that generate imperfect signals of his productivity. The actions can be ranked...

Persistent link: https://www.econbiz.de/10003781460

Does signaling work in markets for information services? : an empirical investigation for insurance intermediaries in Germany

Eckardt, Martina - 2007

analyze whether signaling works in the German market for insurance intermediation services. For this a signal must increase … using OLS and logit estimations we test whether intermediary type, reputational activities and a variety of signaling … instruments work as credible signals. Our findings confirm the main hypotheses derived from signaling theory as to the poor …

Persistent link: https://www.econbiz.de/10003886031

Measuring agents' reaction to private and public information in games with strategic complementarities

Cornand, Camille; Heinemann, Frank - 2010

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/10003937803

Financial expertise as an arms race

Glode, Vincent; Green, Richard C.; Lowery, Richard - 2010 - Rev.

We show that firms intermediating trade have incentives to overinvest in financial expertise, and that these investments can be destabilizing. Financial expertise in our model improves firms' ability to accurately estimate value when trading a security. It creates adverse selection, which under...

Persistent link: https://www.econbiz.de/10003955258

Why the publication of socially harmful information may be socially desirable

Hahn, Volker - 2009 - This version: November 2009

We propose a signaling model in which the central bank and firms receive information on cost-push shocks independently … signaling incentives under opacity. Our model may also explain the recent trend towards more transparency in monetary policy. …

Persistent link: https://www.econbiz.de/10008746680