Search Results - subject:"Asymmetric information"

Yang, Fan; Harstad, Ronald M. - 2017

Might the resource costliness of making signals credible be low or negligible? Using a job market as an example, we build a signaling model to determine the extent to which a transfer from an applicant might replace a resource cost as an equilibrium method of achieving signal credibility. Should...

Certification and market transparency

Stahl, Konrad; Strausz, Roland - 2017

In markets with quality unobservable to buyers, third-party certification is often the only instrument to increase transparency. While both sellers and buyers have a demand for certification, its role differs fundamentally: sellers use it for signaling, buyers use it for inspection. Seller...

High frequency trading and fragility

Cespa, Giovanni; Vives, Xavier - 2017

We show that limited dealer participation in the market, coupled with an informational friction resulting from high frequency trading, can induce demand for liquidity to be upward sloping and strategic complementarities in traders' liquidity consumption decisions: traders demand more liquidity...

The intricacy of adapting to climate change : flood protection as a local public goods game

Bondarev, Anton; Hintermann, Beat; Krysiak, Frank C.; … - 2017

We study adaptation to climate change in a federalist setting. To protect themselves against an increase in flood risk, regional governments choose among adaptation measures that vary with respect to their costs, the level of protection they offer, and the presence and nature of spillovers to...

Minimizing asymmetric information in online markets through knowledge management

Arbi, Khalil Ahmed; Kausar, Abdul Rashid; Salim, Imran - In: International journal of management excellence : IJME 8 (2017) 2, pp. 924-931

Can a bonus overcome moral hazard? : an experiment on voluntary payments, competition, and reputation in markets for expert services

Angelova, Vera; Regner, Tobias - 2017

Interactions between players with private information and opposed interests are often prone to bad advice and inefficient outcomes, e.g. markets for financial or health care services. In a deception game we investigate experimentally which factors could improve advice quality. Besides advisor...

Healer or gatekeeper? : physicians' role conflict when symptoms are non-verifiable

Carlsen, Benedicte; Nyborg, Karine - 2017

Although physicians are often expected to be gatekeepers to health insurance benefits such as paid sick leave, research indicates a substantial reluctance to reject patient requests for sickness certificates. We show that private information on the patient's part creates a conflict between the...

Information acquisition in vertical relations

Baake, Pio; Harasser, Andreas; Heiny, Friederike - In: The B.E. journal of economic analysis & policy 17 (2017) 1, pp. 1-13

Reducing asymmetric information in venture capital backed IPOs

Escobari, Diego; Serrano, Alejandro - 2015

Purpose - The purpose of this paper is to model asymmetric information and study the profitability of venture capital … group. Design/methodology/approach - We propose a new method to model asymmetric information between investors and firms in … mixture approach helps decrease asymmetric information for investors, regulators, and companies. Originality/value - Our …

Potential output and fiscal rules in a monetary union under asymmetric information - 2nd ed

Marattin, Luigi; Meraglia, Simone - 2016 - 2nd edition

We analyze fiscal rules within a Monetary Union in the presence of (i) asymmetric information on member states … states' output gap. In the presence of asymmetric information and bailout, the first-best deficit is not implementable. Bail …. Our model can then account for a situation where both asymmetric information over cyclical positions and the presence of …