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Facilitating Consumer Learning in Insurance Markets—What Are the Welfare Effects?
Lagerlöf, Johan N. M.; Schottmüller, Christoph - C.E.P.R. Discussion Papers - 2013
What are the welfare effects of a policy that facilitates for insurance customers to privately and covertly learn about … their accident risks? We endogenize the information structure in Stiglitz's classic monopoly insurance model. We first show …
Persistent link: https://www.econbiz.de/10011083449
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Monopoly Insurance with Endogenous Information
Lagerlöf, Johan N. M.; Schottmüller, Christoph - C.E.P.R. Discussion Papers - 2013
We study a monopoly insurance model with endogenous information acquisition. Through a continuous effort choice …
Persistent link: https://www.econbiz.de/10011084544
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Asymmetric Learning in Repeated Contracting: An Empirical Study
Cohen, Alma - In: The Review of Economics and Statistics 94 (2012) 2, pp. 419-432
This paper uses a unique panel data set of an insurer's transactions with repeat customers. Consistent with the asymmetric learning hypothesis that repeated contracting enables sellers to obtain an informational advantage over their rivals, I find that the insurer makes higher profits in...
Persistent link: https://www.econbiz.de/10011010011
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Overconfidence and Delegated Portfolio Management
Palomino, Frédéric; Sadrieh, Abdolkarim - C.E.P.R. Discussion Papers - 2004
Following extensive empirical evidence about ‘market anomalies’ and overconfidence, the analysis of financial markets … overconfidence. …
Persistent link: https://www.econbiz.de/10005497969
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Banker Compensation and Confirmation Bias
Sabourian, Hamid; Sibert, Anne - C.E.P.R. Discussion Papers - 2009
Confirmation bias refers to cognitive errors that bias one towards one's own prior beliefs. A vast empirical literature documents its existence and psychologists identify it as one of the most problematic aspects of human reasoning. In this paper, we present three related scenarios where...
Persistent link: https://www.econbiz.de/10005661569
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Overconfidence, public disclosure and long-lived information
Zhou, Deqing - In: Economics Letters 116 (2012) 3, pp. 626-630
We analyze a strategic trading model where an overconfident insider is required to publicly disclose his trades after the fact. We find the more confident insider is more concerned about the effect the initial trading has on the future.
Persistent link: https://www.econbiz.de/10010594175
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Overconfidence and moral hazard
la Rosa, Leonidas Enrique de - In: Games and Economic Behavior 73 (2011) 2, pp. 429-451
In this paper, I study the effects of overconfidence on incentive contracts in a moral-hazard framework. Agent … overconfidence can have conflicting effects on the equilibrium contract. On the one hand, an optimistic or overconfident agent …, there are efficiency gains stemming from his overconfidence. If the agent is significantly overconfident, the former effect …
Persistent link: https://www.econbiz.de/10010573644
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Self-Esteem, Shame and Personal Motivation
Dessí, Roberta; Zhao, Xiaojian - C.E.P.R. Discussion Papers - 2011
Evidence from psychology suggests that overconfidence is more important in North America than in Japan. The pattern is … the benefits of promoting initiative and new investments. Overconfidence and high sensitivity to shame emerge as …
Persistent link: https://www.econbiz.de/10009399711
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Irrational confidence, imperfect and long-lived information
Zhou, Deqing - In: International Review of Economics & Finance 27 (2013) C, pp. 383-405
We analyze a dynamic framework where an informed agent overestimates or underestimates the precision of his noisy private signal. We investigate the effect of the insider's belief on equilibrium results such as the price informativeness, the liquidity cost, the trading strategy and the expected...
Persistent link: https://www.econbiz.de/10010664324
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Chapter 59 Strategic aspects of political systems
Banks, Jeffrey S. - In: Handbook of game theory with economic applications : …, (pp. 2203-2228). 2002
Early results on the emptiness of the core and the majority-rule-chaos results led to the recognition of the importance of modeling institutional details in political processes. A sample of the literature on game-theoretic models of political phenomena that ensued is presented. In the case of...
Persistent link: https://www.econbiz.de/10014024486