Showing 61 - 70 of 113,600
In Spence's (1973) signaling by education model and in many of its extensions, firms can only infer workers …' productivities. We characterize the trade-offs between signaling by workers and costly information acquisition by firms. Information … workers have low productivity. Our analysis applies also to other signaling problems, e.g. the financial structure of firms …
Persistent link: https://www.econbiz.de/10011888619
We examine the effects of informational intermediation by a third party 'infomediary' in a search model with heterogeneous seller qualities and asymmetric information. The infomediary earns revenue by selling a list of accredited sellers (a 'guidebook') to buyers and selling accreditations to...
Persistent link: https://www.econbiz.de/10014057918
We study the effect of congestion on monopoly second-degree price discrimination. We provide three results. First, with congestion, the firm does not always provide distinct contracts (i.e., it is not always optimal to price discriminate) and it is more likely for the low-valuation buyer to be...
Persistent link: https://www.econbiz.de/10013065228
Should contract design induce an agent to conduct a precontractual investigation even though, in any case, the agent will become fully informed after the signing of the contract? This paper shows that imperfect investigations might be encouraged. The result stands in contrast to previous...
Persistent link: https://www.econbiz.de/10010198969
In Spence's (1973) signaling by education model and in many of its extensions, firms can only infer workers …' productivities. We characterize the trade-offs between signaling by workers and costly information acquisition by firms. Information … workers have low productivity. Our analysis applies also to other signaling problems, e.g. the financial structure of firms …
Persistent link: https://www.econbiz.de/10011878774
characterize the trade–offs between signaling by workers and costly auditing by firms. Auditing is always associated with (partial …
Persistent link: https://www.econbiz.de/10012648090
Is the reputation of a firm tradeable when the previous owner has toretire even though ownership change is observable? The authors of this paper consider a competitive market in which a share of owners must retire in each period. New owners, observing only recent profits, bid for the firms...
Persistent link: https://www.econbiz.de/10005850461
Is the reputation of a firm tradeable when the previous owner has to retire even though ownership change is observable? We consider a competitive market in which a share of owners must retire in each period. New owners, observing only recent profits, bid for the firms on sale. Customers are...
Persistent link: https://www.econbiz.de/10010261210
Is the reputation of a firm tradable when the change in ownership is observable? We consider a competitive market in which a share of owners must retire in each period. New owners bid for the firms that are for sale. Customers learn the owner's type, which reflects the quality of the good or...
Persistent link: https://www.econbiz.de/10010334019
Is the reputation of a firm tradable when the change in ownership is observable? We consider a competitive market in which a share of owners must retire in each period. New owners bid for the firms that are for sale. Customers learn the owner’s type, which reflects the quality of the good...
Persistent link: https://www.econbiz.de/10005785913