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We study which factors in terms of trading environment and trader characteristics determine individual information acquisition in experimental asset markets. Traders with larger endowments, existing inconclusive information, lower risk aversion, and less experience in financial markets tend to...
Persistent link: https://www.econbiz.de/10012972093
The ad hoc Black-Scholes (AHBS) model is one of the most widely used option valuation models among practitioners models. The main contribution of this study is methodological. We have two main results: (1) we make the empirical observation that typically the call and put sneers are discontinuous...
Persistent link: https://www.econbiz.de/10013097543
In this article, we provide an alternative evidence of asymmetric information in automobile insurance based on a copula model. We use the Frank’s copula to jointly model the type of policy coverage chosen and the number of accidents, with the dependence parameter providing for evidence of the...
Persistent link: https://www.econbiz.de/10014191732
The paper studies a dynamic communication game in the presence of adverse selection and career concerns. A forecaster of privately known competence, who cares about his reputation, chooses the timing of the forecast regarding the outcome of some future event. We find that in all equilibria in a...
Persistent link: https://www.econbiz.de/10012859563
We examine how analysts' anticipation of a management forecast affects their search for private information. Analysts are likely to acquire more private information because of the potential gains from trading on that information before a publicly disclosed management forecast. However, this...
Persistent link: https://www.econbiz.de/10013031704
Discrimination is a pervasive aspect of modern society and human relations. Statistical discrimination theory suggests …, whereas statistical discrimination theory implies that better predictions can be achieved by using all available information … suggesting that statistical discrimination often results in worse predictions. By understanding when statistical discrimination …
Persistent link: https://www.econbiz.de/10014079853
Should arbitrators consider authority—such as statutes or case law—external to the collective bargaining agreement when deciding labor grievances? Do they rely on such external authority? If so, do they do so in particular circumstances or in certain types of cases? To provide more insight...
Persistent link: https://www.econbiz.de/10012826602
Persistent link: https://www.econbiz.de/10003930246
We study an adverse-selection model in which the distribution of the asset is affected by unobservable actions of the seller. The seller's equilibrium behavior is characterized by a risk-seeking disposition, and a competitive market, in which the underlying distribution of the traded asset is...
Persistent link: https://www.econbiz.de/10012834862
Persistent link: https://www.econbiz.de/10014316802