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Deposit insurance schemes are becoming increasingly popular around the world and yet there is little understanding of how they should be designed and what their consequences are. In this Paper we provide a new rationale for the provision of deposit insurance. We analyse a model in which agents...
Persistent link: https://www.econbiz.de/10005136557
We study a tractable two-dimensional model of price discrimination. Consumers combine a rigid with a more flexible choice, such as choosing the location of a house and its quality or size. We show that the optimal pricing scheme involves no bundling if consumer types are affiliated. Conversely,...
Persistent link: https://www.econbiz.de/10011145402
upstream monopolist to limit output to monopoly levels, whereas a disintegrated structure will ‘over-sell’, producing more in … is, supply less than their monopoly output. Low-cost firms continue to over-sell, so all types of firms have a reason to …
Persistent link: https://www.econbiz.de/10005498007
This Paper studies the theoretical and econometric implications of agents’ uncertainty about their future consumption when a monopolist offers them either a unique, mandatory nonlinear tariff, or a choice in advance among a menu of optional two-part tariffs. In this model, agents’...
Persistent link: https://www.econbiz.de/10005114385
Ever since the seminal work by Rothschild and Stiglitz (1976) on competitive insurance markets under adverse selection the equilibrium-non-existence problem has been one of the major puzzles in insurance economics. We extend the original analysis by considering firms that face capacity...
Persistent link: https://www.econbiz.de/10005661929
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
We study a monopoly insurance model with endogenous information acquisition. Through a continuous effort choice …
Persistent link: https://www.econbiz.de/10011084544
For many goods (such as experience goods or addictive goods), consumers' preferences may change over time. In this paper, we examine a monopolist's optimal pricing schedule when current consumption can affect a consumer's valuation in the future and valuations are unobservable. We assume that...
Persistent link: https://www.econbiz.de/10005497874
We develop a theory of exclusive dealing that rehabilitates pre-Chicago-school analyses. Our theory rests on two …
Persistent link: https://www.econbiz.de/10011084291
In many long-term relationships, parties may be reluctant to reveal their private information in order to benefit from their informational advantage in the future. We point out that the strategic use of debt by an uninformed party induces another party to reveal private information. Our...
Persistent link: https://www.econbiz.de/10005661720