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We study the perfect Bayesian equilibrium of a model of learning over a general social network. Each individual receives a signal about the underlying state of the world, observes the past actions of a stochastically-generated neighborhood of individuals, and chooses one of two possible actions....
Persistent link: https://www.econbiz.de/10012771797
By reducing the threat of a hostile takeover, business combination (BC) laws weaken corporate governance and increase the opportunity for managerial slack. Consistent with the notion that competition mitigates managerial slack, we find that while firms in non-competitive industries experience a...
Persistent link: https://www.econbiz.de/10012757546
. This paper explores the effect of such relief on incentives and the allocation of risk in a model with private insurance …
Persistent link: https://www.econbiz.de/10012760198
unconditional linear performance benchmark and show that this benchmark can be used to better align incentives within the firm. The …
Persistent link: https://www.econbiz.de/10012761668
We study the optimal Mirrlees taxation problem in a dynamic economy with idiosyncratic (productivity or preference) shocks. In contrast to the standard approach, which implicitly assumes that the mechanism is operated by a benevolent planner with full commitment power, we assume that any...
Persistent link: https://www.econbiz.de/10012767334
algorithms with the purpose of creating incentives for an efficient and fair health care system. In this paper, we take a …
Persistent link: https://www.econbiz.de/10012922211
to share them than people with moderate opinions, resulting in biased distributions of reviews. Providing incentives for … reviewing has the potential to reduce this selection bias, because incentives can mitigate the motivational deficit of people …, providing relatively high monetary rewards or a pro-social cue as incentives for reviewing reduces this bias. We conclude that …
Persistent link: https://www.econbiz.de/10012925901
Kremer and Snyder (2015) show that demand curves for a preventive and treatment may have different shapes though they target the same disease, biasing the pharmaceutical manufacturer toward developing the lucrative rather than the socially desirable product. This paper tightens the theoretical...
Persistent link: https://www.econbiz.de/10012930337
at approximately age 57. Thus, older workers face strong incentives to earn enough to obtain creditable coverage through …
Persistent link: https://www.econbiz.de/10013011940
We correct and extend the results of Gans (2015) regarding the effects of net neutrality regulation on equilibrium outcomes in settings where a content provider sells its services to consumers for a fee. We examine both pricing and investment effects. We extend the earlier paper's result that...
Persistent link: https://www.econbiz.de/10012997888