Showing 1 - 10 of 103
definition of dynamically consistent behavior, and we discuss whether an intrinsic information lover (say, an anxious person) is …
Persistent link: https://www.econbiz.de/10005762811
Changes in total surplus and deadweight loss are traditional measures of economic welfare. We propose necessary and sufficient conditions for rationalizing consumer demand data with a quasilinear utility function. Under these conditions, consumer surplus is a valid measure of consumer welfare....
Persistent link: https://www.econbiz.de/10005464041
It is often suggested that incentive schemes under moral hazard can be gamed by an agent with superior knowledge of the environment, and that deliberate lack of transparency about the incentive scheme can reduce gaming. We formally investigate these arguments in a two-task moral hazard model in...
Persistent link: https://www.econbiz.de/10010895687
We determine empirically how the Big Three automakers accommodate shocks to demand. They have the capability to change prices, alter labor inputs through temporary layoffs and overtime, or adjust inventories. These adjustments are interrelated, non-convex, and dynamic in nature. Combining weekly...
Persistent link: https://www.econbiz.de/10005093962
This paper introduces a new detailed data set of high-frequency observations on inventory investment by a U.S. steel wholesaler. Our analysis of these data leads to six main conclusions: orders and sales are made infrequently; orders are more volatile than sales; order sizes vary considerably;...
Persistent link: https://www.econbiz.de/10005087401
There are many situations in which a customer's proclivity to buy the product of any firm depends not only on the classical attributes of the product such as its price and quality, but also on who else is buying the same product. We model these situations as games in which firms compete for...
Persistent link: https://www.econbiz.de/10005593259
We study a vertically differentiated market where two firms simultaneously choose the quality and price of the good they sell and where consumers also care for the average quality of the goods supplied. Firms are composed of two factions whose objectives differ: one is maximizing profit while...
Persistent link: https://www.econbiz.de/10005593408
. The dynamic resolution of uncertainty implies ex post differentiation and hence both sellers value information positively …. As information is generated only by experiments with the new product, this relaxes the price competition in the dynamic …
Persistent link: https://www.econbiz.de/10005463873
Psychological experiments demonstrate that people exhibit a taste for consistency. Individuals are inclined to interpret new evidence in ways that confirm their pre-existing beliefs. They also tend to change their beliefs to enhance the desirability of their past actions. I present a model that...
Persistent link: https://www.econbiz.de/10005463891
which agents receive private information over time. We propose a suitable generalization of the Vickrey …
Persistent link: https://www.econbiz.de/10005463896