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Charness, Gary; Rustichini, Aldo; Ven, Jeroen van de - CESifo - 2013

salient perturbations, we propose a strategic foundation of overconfidence. Since overconfident statements are used in …

Persistent link: https://www.econbiz.de/10010877986

Nitpicky Insurers and the Law of Contracts

Bourgeon, Jean-Marc - 2017

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … show how the law of insurance contracts should allow insurers to incentivize policyholders to exert an adequate level of …

Persistent link: https://www.econbiz.de/10012945057

Uncertain Bequest Needs and Long-Term Insurance Contracts

Fei, Wenan; Fluet, Claude; Schlesinger, Harris - CESifo - 2008

We examine how long-term life insurance contracts can be designed to incorporate uncertain future bequest needs. An … individual who buys a life insurance contract early in life is often uncertain about the future financial needs of his or her …. We derive two equivalent long-term life insurance contracts that are incentive compatible and achieve a higher welfare …

Persistent link: https://www.econbiz.de/10005405924

Income Tax Buyouts and Income Tax Evasion

Goerke, Laszlo - CESifo - 2014

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected...

Persistent link: https://www.econbiz.de/10010739344

Corporate Taxation and Financial Strategies Under Asymmetric Information

Cohen, Francesco; Fedele, Alessandro; Panteghini, Paolo - CESifo - 2014

In this article we study the corporate tax effects on credit market equilibria. In particular, we develop a model that accounts for five pieces of evidence: i) the existence of a tax incentive to borrow, ii) the negative relationship between leverage and profitability, iii) the existence of...

Persistent link: https://www.econbiz.de/10010764291

Efficiency, Welfare, and Political Competition

Bierbrauer, Felix; Boyer, Pierre C. - CESifo - 2014

We study political competition in an environment in which voters have private information about their preferences. Our framework covers models of income taxation, public-goods provision or publicly provided private goods. Politicians are vote-share-maximizers. They can propose any policy that is...

Persistent link: https://www.econbiz.de/10010779412

When Ignorance is Bliss - Information Asymmetries Enhance Prosocial Behavior in Dictator Games

Winschel, Evguenia; Zahn, Philipp - CESifo - 2014

In most laboratory experiments concerning prosocial behavior subjects are fully informed how their decision influences the payoff of other players. Outside the laboratory, however, individuals typically have to decide without such detailed knowledge. To assess the effect of information...

Persistent link: https://www.econbiz.de/10010877838

Asymmetric Information and Overinvestment in Quality

Belleflamme, Paul; Peitz, Martin - CESifo - 2009

In a standard adverse selection world, asymmetric information about product quality leads to quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of...

Persistent link: https://www.econbiz.de/10005000399

Public and Private Learning from Prices, Strategic Substitutability and Complementarity, and Equilibrium Multiplicity

Manzano, Carolina; Vives, Xavier - CESifo - 2010

We study a general static noisy rational expectations model, where investors have private information about asset payoffs, with common and private components, and about their own exposure to an aggregate risk factor, and derive conditions for existence and uniqueness (or multiplicity) of...

Persistent link: https://www.econbiz.de/10008511613

Donating Time or Money: Are they Substitutes or Complements?

Hartmann, Bastian; Werding, Martin - CESifo - 2012

Decisions to donate time or money for charitable purposes are typically seen as make-or-buy decisions, implying that there should be a clear distinction between individuals engaging in one of these two forms of giving and that this distinction should be somehow linked to opportunity costs. But...

Persistent link: https://www.econbiz.de/10010555695