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Allocation of Authority when a Person is not a Robot

Li, Jianpei; Wu, Yanhui - 2007

We formalize a conception of authority, which is commonly defined as the right of controlling a person’s actions embedded in human assets in sociology. Due to the inalienable property of human assets, the contractible formal authority is hard to verify and enforce, while real authority usually...

Persistent link: https://www.econbiz.de/10010427483

The Choice of Prices vs. Quantities under Uncertainty

Reisinger, Markus; Reßner, Ludwig - 2007

This paper analyzes a duopoly model with stochastic demand in which firms first choose their strategy variable and compete afterwards. Contrary to the existing literature, we show that firms do not always choose a quantity which is the variable that induces a smaller degree of competition. The...

Persistent link: https://www.econbiz.de/10010427484

Liquidity Shortages and Monetary Policy

Illing, Gerhard; Cao, Jin - 2007

The paper models the interaction between risk taking in the financial sector and central bank policy. It shows that in the absence of central bank intervention, the incentive of financial intermediaries to free ride on liquidity in good states may result in excessively low liquidity in bad...

Persistent link: https://www.econbiz.de/10010427485

Social Norms and the Evolution of Conditional Cooperation

Spichtig, Mathias; Traxler, Christian - 2007

This paper develops a model of social norms and cooperation in large societies. Within this framework we use an indirect evolutionary approach to study the endogenous formation of preferences and the coevolution of norm compliance. Thereby we link the multiplicity of equilibria, which emerges in...

Persistent link: https://www.econbiz.de/10010427487

Competition for Firms in an Oligopolistic Industry: Do Firms or Countries Have to Pay?

Haufler, Andreas; Wooton, Ian - 2007

We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in...

Persistent link: https://www.econbiz.de/10010427489

Subsidy Competition and the Role of Firm Ownership

Mittermaier, Ferdinand - 2007

This paper addresses the role that foreign vs. domestic ownership of companies plays for governments in asymmetric countries' competition for a multinational's subsidiary. I argue that equilibrium subsidies as well as a foreign investor's location decision in policy competition between these...

Persistent link: https://www.econbiz.de/10010427490

Liquidity Risk and Monetary Policy

Sauer, Stephan - 2007

This paper provides a framework to analyse emergency liquidity assistance of central banks on financial markets in response to aggregate and idiosyncratic liquidity shocks. The model combines the microeconomic view of liquidity as the ability to sell assets quickly and at low costs and the...

Persistent link: https://www.econbiz.de/10010427492

The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment

Schunk, Daniel; Winter, Joachim - 2007

Experimental studies of search behavior suggest that individuals stop searching earlier than predicted by the optimal, risk-neutral stopping rule. Such behavior could be generated by two different classes of decision rules: rules that are optimal conditional on utility functions departing from...

Persistent link: https://www.econbiz.de/10010427494

The Effect of Bank Competition on the Bank's Incentive to Collateralize

Hainz, Christa - 2007

It has been argued that competing banks make inefficiently frequent use of collateralization in situations where they are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and collateralization in a model where banks do not have this...

Persistent link: https://www.econbiz.de/10010427497

Measuring real value and inflation

Hillinger, Claude - 2007

derive these measures are largely unsatisfactory. The axiomatic theory of indexes does not make clear which economic problem …. For example, the theory of the CPI is usually developed for a single consumer with homothetic preferences and then applied … to a large aggregate of diverse consumers with non-homothetic preferences. In this paper I develop a unitary theory that …

Persistent link: https://www.econbiz.de/10010427498