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Starting with a simple economic model of the value of civil litigation from each side's perspective, this paper … analyses a wide range of potential litigation cost strategies, settlement offers and negotiations, together with relevant … applications and insights from game theory. Specific issues examined include: optimal settlement agreements, optimal settlement …
Persistent link: https://www.econbiz.de/10014026078
reputation of a silent forecaster, on the other hand, gradually improves over time. …
Persistent link: https://www.econbiz.de/10012123351
Extensive evidence suggests that managers strategically choose the complexity of their descriptive disclosures. However, their motives in doing so appear mixed, as complex disclosures are used to obfuscate in some cases and as a means of informative communication in others. Building on these...
Persistent link: https://www.econbiz.de/10013210882
The theory of voluntary disclosure of information posits that market forces lead senders to disclose information …
Persistent link: https://www.econbiz.de/10012024603
A matching platform elicits information about two customers' (quality) types and decides how to disclose that information. The platform intends to persuade the customers to form a match, knowing that adverse selection may occur (and undermine matchmaking) when the customers are uncertain about...
Persistent link: https://www.econbiz.de/10013308991
control treatment, the buyer is aware of both dimensions, but uncertain about them. The theory predicts unraveling of …
Persistent link: https://www.econbiz.de/10015405163
Persistent link: https://www.econbiz.de/10012512380
In case of multiple source lending even solvent firms may be forced into bankruptcy due to uncoordinated credit withdrawals of their lenders. This paper analyzes whether a debtor firm can thwart such inefficient liquidations by offering creditors the option to delay their foreclosure decision...
Persistent link: https://www.econbiz.de/10003636509
We study voluntary disclosure strategies in leader-follower games where firms choose real actions sequentially after simultaneously disclosing information. We show that the leader incurs an endogenous consistency cost when withholding information because it must choose a suboptimal real action...
Persistent link: https://www.econbiz.de/10014237274
How much information about financial institutions' balance sheets should regulators pass on to the market? To minimize the probability of inefficient default, the regulator optimally designs a disclosure regime that imposes transparency when the firm has weak fundamentals and opacity, otherwise....
Persistent link: https://www.econbiz.de/10014351306