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upward bias was common knowledge. The requirement was attacked by a Chicago economist, Melchior Palyi, on philosophical … financed a massive study of bond ratings which developed a technical response to remove the bias. The study required a trade …
Persistent link: https://www.econbiz.de/10013137561
upward bias was common knowledge. The requirement was attacked by a Chicago economist, Melchior Palyi, on philosophical … financed a massive study of bond ratings which developed a technical response to remove the bias. The study required a trade …
Persistent link: https://www.econbiz.de/10013137832
result, we show that an agent with a probability weighting function as in Cumulative Prospect Theory (resp. an ambiguity …
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A principal is uncertain of an agent's preferences and cannot provide monetary transfers. The principal, however, does control the discretion granted to the agent. In this paper, we provide a simple characterization of when it is optimal for the principal to screen by offering different terms of...
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dynamic commitment, this promise is credible only if the agent's bias is small; otherwise, he pipets information …
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