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Neeman, Zvika; Pavlov, Gregory - University of Western Ontario, Department of Economics - 2010

We study a mechanism design problem under the assumption that renegotiation cannot be prevented. We investigate what kind of equilibria of which mechanisms are renegotiation-proof under a variety of renegotiation procedures, and which social choice functions can be implemented in a way that is...

Persistent link: https://www.econbiz.de/10008583353

Hidden action, identification and organisation design

Schnedler, Wendelin - Centre for Market and Public Organisation (CMPO), … - 2010

Incentives often fail in inducing economic agents to engage in a desirable activity; implementability is restricted. What restricts implementability? When does re-organization help to overcome this restriction? This paper shows that any restriction of implementability is caused by an...

Persistent link: https://www.econbiz.de/10008782828

Ex post renegotiation-proof mechanism design

Neeman, Zvika; Pavlov, Gregory - In: Journal of Economic Theory 148 (2013) 2, pp. 473-501

We study what kind of equilibria of which mechanisms are ex post renegotiation-proof (EPRP), i.e., robust against the possibility of ex post renegotiation under a variety of renegotiation procedures, and which social choice functions are EPRP implementable. In complete information environments...

Persistent link: https://www.econbiz.de/10011042983

Raffles

Immorlica, Nicole - 2017

We propose a simple and practical "raffle" mechanism for allocating a limited supply of heterogeneous goods among unit demand consumers. While the mechanism is inspired by the common "tricky tray" raffle and a housing allocation system in Singapore, it has not been analyzed before, perhaps...

Persistent link: https://www.econbiz.de/10012963113

Landscape in the Economy of Conspicuous Consumptions

Situngkir, Hokky - Volkswirtschaftliche Fakultät, … - 2010

Psychological states side by side with the bounded rational expectations among social agents contributes to the pattern of consumptions in economic system. One of the psychological states are the envy – a tendency to emulate any gaps with other agents’ properties. The evolutionary game...

Persistent link: https://www.econbiz.de/10008498474

A Theory of Debt Maturity and Innovation

Mitkov, Yuliyan - 2020

I propose a theory of debt maturity as an incentive device to motivate innovation when contracts are fundamentally incomplete and shaped by ex-post renegotiation. The financing of innovative firms must balance two goals. On the one hand, since innovation is inherently risky, the entrepreneur...

Persistent link: https://www.econbiz.de/10012420372

Incentives, ability and disutility of effort

Martinez-Gorricho, Silvia; Villalba, Miguel Sanchez - In: SERIEs - Journal of the Spanish Economic Association 12 (2021) 3, pp. 453-487

We generalize the disutility of effort function in the linear-Constant Absolute Risk Aversion (CARA) puremoral hazardmodel.We assume that agents are heterogeneous in ability. Each agent's ability is observable and treated as a parameter that indexes the disutility of effort associated with the...

Persistent link: https://www.econbiz.de/10014496072

Dynamic Adverse Selection and Belief Update in Credit Markets

Jang, Inkee - 2020

We develop a dynamic model of debt contracts with adverse selection and belief updates. In the model, entrepreneurs borrow investment goods from lenders to run businesses whose returns depend on entrepreneurial productivity and common productivity. Entrepreneurial productivity is the...

Persistent link: https://www.econbiz.de/10012840518

Optimal Sales Mechanism with Outside Options

Chang, Dongkyu - 2019

This paper studies the optimal design of sales mechanisms when a buyer can quit the negotiation for an outside option at any time. The main results show that the profit-maximizing mechanism reduces price over time, and thus a set of buyer types delay purchasing the good. Moreover, to prevent the...

Persistent link: https://www.econbiz.de/10012868056

(Interim) Bayesian efficiency implies two-agent Bayesian implementation

Korpela, Ville - 2020

We study the relationship between two-agent implementation problems and the notionof interim efficiency due to …, Bayesianefficiency, and show that it is sufficient for implementation of social choice functions.We also show that this condition is … sufficient for implementation of social choice setsunder a weak domain restriction - in particular, no economic condition is …

Persistent link: https://www.econbiz.de/10012852742