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Signalling and Default: Rothschild-Stiglitz Reconsidered

Dubey, Pradeep; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2001

In our previous paper we built a general equilibrium model of default and punishment in which equilibrium always exists and endogenously determines asset promises, penalties, and sales constraints. In this paper we interpret the endogenous sales constraints as equilibrium signals. By...

Persistent link: https://www.econbiz.de/10005463898

Competitive Pooling: Rothschild-Stiglitz Reconsidered

Dubey, Pradeep; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2001

We build a model of competitive pooling, which incorporates adverse selection and signalling into general equilibrium …

Persistent link: https://www.econbiz.de/10004990814

Competitive Pooling: Rothschild-Stiglitz Reconsidered

Dubey, Pradeep; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2001

We build a model of competitive pooling, which incorporates adverse selection and signalling into general equilibrium …

Persistent link: https://www.econbiz.de/10005593561

Insurance Contracts Designed by Competitive Pooling

Dubey, Pradeep; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2001

We build a model of competitive pooling and show how insurance contracts emerge in equilibrium, designed by the invisible hand of perfect competition. When pools are exclusive, we obtain a unique separating equilibrium. When pools are not exclusive but seniority is recognized, we obtain a...

Persistent link: https://www.econbiz.de/10005593621

Targeting in Advertising Markets: Implications for Offline vs. Online Media

Bergemann, Dirk; Bonatti, Alessandro - Cowles Foundation for Research in Economics, Yale University - 2010

We develop a model with many heterogeneous advertisers (products) and advertising markets (media). Each advertiser has … increases the concentration of advertising firms in each market. Surprisingly, we find that the equilibrium price for …

Persistent link: https://www.econbiz.de/10008540613

Targeting in Advertising Markets: Implications for Offline vs. Online Media

Bergemann, Dirk; Bonatti, Alessandro - Cowles Foundation for Research in Economics, Yale University - 2010

We develop a model with many advertisers (products) and many advertising markets (media). Each advertiser sells to a … different segment of consumers, and each medium has a different ability to target advertising messages. We characterize the … competitive equilibrium in the media markets and evaluate the implications of targeting in advertising markets. An increase in the …

Persistent link: https://www.econbiz.de/10008490303

Warranties as Signals Under Consumer Moral Hazard

Lutz, Nancy A. - Cowles Foundation for Research in Economics, Yale University - 1988

In this paper, I examine whether and how warranties serve as signals of product quality in an environment where there are opportunities for consumer moral hazard. My model is very similar to Grossman's. A risk neutral monopolist produced a good of fixed and exogenous quality. This product is...

Persistent link: https://www.econbiz.de/10005463971

Fiat Money and the Natural Scale of Government

Shubik, Martin; Smith, Eric - Cowles Foundation for Research in Economics, Yale University - 2005

The competitive market structure of a decentralized economy is converted into a self-policing system treating the bureaucracy and enforcement of the legal system endogenously. In particular we consider money systems as constructs to make agents' economic strategies predictable from knowledge of...

Persistent link: https://www.econbiz.de/10005463905

Does Prison Harden Inmates? A Discontinuity-based Approach

Chen, M. Keith; Shapiro, Jesse M. - Cowles Foundation for Research in Economics, Yale University - 2003

Some two million Americans are currently incarcerated, with roughly six hundred thousand to be released this year. Despite this, little is known about the effects of confinement conditions on the post-release lives of inmates. Focusing on post-release criminal activity, we identify the causal...

Persistent link: https://www.econbiz.de/10005593393

Commodity Money and the Valuation of Trade

Smith, Eric; Shubik, Martin - Cowles Foundation for Research in Economics, Yale University - 2005

In a previous essay we modeled the enforcement of contract, and through it the provision of money and markets, as a production function within the society, the scale of which is optimized endogenously by labor allocation away from primary production of goods. Government and a central bank...

Persistent link: https://www.econbiz.de/10005593614