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Asymmetric information is an important source of inefficiency when assets (like firms) are transacted. The two main sources of this asymmetry are unobserved idiosyncratic characteristics of the asset (for example, quality) and unobserved idiosyncratic choices (actions done by the current...
Persistent link: https://www.econbiz.de/10014170975
We consider the effect a public revelation of information (e.g. rating, grade) has on signaling and trading in a dynamic model. Competing buyers offer prices to a privately informed seller who can reject these offers and delay trade. This delay is costly and the seller has no commitment to the...
Persistent link: https://www.econbiz.de/10014027801
Asymmetric information is an important source of inefficiency when an asset (such as a firm) is transacted. The two main sources of this asymmetry are the unobserved idiosyncratic characteristics of the asset (such as future profitability) and unobserved idiosyncratic choices (like secret price...
Persistent link: https://www.econbiz.de/10013074026
reputation are examined …
Persistent link: https://www.econbiz.de/10013310444
chooses whether to continue receiving a return that is an increasing function of both her reputation and an exogenous public …, and she builds a reputation by continuing when the stakes reach a new minimum. We discuss applications to corporate … reputation management, online vendor reputation, and limit pricing with stochastic demand …
Persistent link: https://www.econbiz.de/10013242323
intermediary may provide an opportunity for reputation effects to apply in such a setting. By aggregating many potential consumers …
Persistent link: https://www.econbiz.de/10012718769
Many service industries, including the medical and legal professions in some countries, display a gated structure. Rather than approaching a final producer directly, a consumer will first seek a referral from an intermediary. Such an industry structure might help to alleviate adverse selection...
Persistent link: https://www.econbiz.de/10012718770
This paper studies the impact of behavioral and non-behavioral information contained in consumer credit reports on the credit market. A repeated game of incomplete information between a borrower and a sequence of lenders is considered. Lenders' beliefs regarding the borrower's type depend on the...
Persistent link: https://www.econbiz.de/10012942022
I model access to influence as a two-sided matching market between a continuum of experts and a finite number of gatekeepers under sequential directed search. Real-world examples include academic publishing, venture capitalism or political agenda setting. Uniqueness of the resulting equilibrium...
Persistent link: https://www.econbiz.de/10014092612
We allow buyers to choose the timing of offers in a dynamic adverse selection model with a single seller. Buyers have private information and can delay their one-time private offers to learn from other buyers by observing trading behavior. We find that the equilibrium exhibits maximum delay in...
Persistent link: https://www.econbiz.de/10014238833