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A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market

Graddy, Kathryn; Hall, George - C.E.P.R. Discussion Papers - 2009

We estimate a dynamic profit-maximization model of a fish wholesaler who can observe consumer characteristics, set individual prices, and thus engage in third-degree price discrimination. Simulated prices and quantities from the model exhibit the key features observed in a set of high quality...

Persistent link: https://www.econbiz.de/10005036234

Wages and Productivity Growth in a Dynamic Monopoly

Bester, Helmut; Petrakis, Emmanuel - C.E.P.R. Discussion Papers - 2001

This Paper studies the inter-temporal problem of a monopolistic firm that engages in productivity-enhancing innovations to reduce its labour costs. If the level of wages is sufficiently low, the firm's rate of productivity growth approaches the rate of wage growth and eventually the firm reaches...

Persistent link: https://www.econbiz.de/10005067455

Earnings Dispersion, Risk Aversion and Education

Belzil, Christian; Hansen, Jörgen - C.E.P.R. Discussion Papers - 2002

We estimate a dynamic programming model of schooling decisions in which the degree of risk aversion can be inferred from schooling decisions. In our model, individuals are heterogeneous with respect to school and market abilities but homogeneous with respect to the degree of risk aversion. We...

Persistent link: https://www.econbiz.de/10005067578

Dynamic Mean-Variance Asset Allocation

Basak, Suleyman; Chabakauri, Georgy - C.E.P.R. Discussion Papers - 2009

Mean-variance criteria remain prevalent in multi-period problems, and yet not much is known about their dynamically optimal policies. We provide a fully analytical characterization of the optimal dynamic mean-variance portfolios within a general incomplete-market economy, and recover a simple...

Persistent link: https://www.econbiz.de/10005656376

Revisiting Dynamic Duopoly with Consumer Switching Costs

Padilla, Atilano Jorge - C.E.P.R. Discussion Papers - 1993

The degree of collusiveness of a market with consumer switching costs is studied in an infinite-horizon overlapping-generations model of duopolistic competition. In contrast to previous models of switching costs, this paper assumes that firms compete for the demand for a homogeneous good by...

Persistent link: https://www.econbiz.de/10005788939

A Structure Analysis of the Correlated Random Coefficient Wage Regression Model

Belzil, Christian; Hansen, Jörgen - C.E.P.R. Discussion Papers - 2002

We estimate a finite mixture dynamic programming model of schooling decisions in which the log wage regression function is set in a random coefficient framework. The model allows for absolute and comparative advantages in the labour market and assumes that the population is composed of eight...

Persistent link: https://www.econbiz.de/10005136691

Risk Sharing and Industrial Specialization: Regional and International Evidence

Sørensen, Bent E; Yosha, Oved - C.E.P.R. Discussion Papers - 1999

We provide empirical evidence that risk sharing enhances specialization in production. To the best of our knowledge, this well-established and important theoretical proposition has not been tested before. Our empirical procedure is summarized as follows. First, we construct a measure of...

Persistent link: https://www.econbiz.de/10005504254

The Empirical Importance of Precautionary Saving

Gourinchas, Pierre-Olivier; Parker, Jonathan A - C.E.P.R. Discussion Papers - 2001

extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the …

Persistent link: https://www.econbiz.de/10005504693

Insurance companies of the poor

Bold, Tessa; Dercon, Stefan - C.E.P.R. Discussion Papers - 2014

We model the emergence of formal insurance institutions as equilibria under limited contract enforceability where … formal and informal groups without requiring heterogeneity in insurance demand, because coalition-proof equilibria can fail … to exist. It also predicts where formal insurance is likely to flourish: insurance groups that hold savings become more …

Persistent link: https://www.econbiz.de/10011096095

Time Inconsistent Preferences and the Annuitization Decision

Schreiber, Philipp; Weber, Martin - C.E.P.R. Discussion Papers - 2015

When entering retirement most people face the decision whether they would like their defined contribution account balance paid as a lump sum or to annuitize the amount. The fact that people tend to choose the lump sum even if economic reasons suggest not to is called the annuity puzzle. In a...

Persistent link: https://www.econbiz.de/10011165648