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Voluntary bankruptcy as preemptive persuasion

Dinev, Nikolay - 2017

This paper examines the phenomenon of management-initiated, court-supervised reorganization of companies in U.S. bankruptcy court. The proposed in-court persuasion mechanism reconciles excessive reorganizations of non-viable companies (and subsequent repeat failures) with management-initiated...

Persistent link: https://www.econbiz.de/10011779720

Frictional asset reallocation under adverse selection

Madison, Florian - 2018 - Revised version

The aim of this paper is to study asset reallocation in financial markets subject to search, bargaining, and information frictions, and to analyze the impact of monetary policy on equilibrium outcomes. The main results show that private information regarding the quality of an asset impairs its...

Persistent link: https://www.econbiz.de/10011790391

Who should pay for certification?

Stahl, Konrad; Strausz, Roland - 2010

Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer or the seller? Our answer ' the seller ' follows from a non-trivial analysis revealing a clear intuition. Buyer-induced certification acts as an inspection device, whence...

Persistent link: https://www.econbiz.de/10003975228

Optimal redistribution and education signaling

Bastani, Spencer; Blumḳin, Tomer; Micheletto, Luca - 2024

This paper studies optimal taxation of income and education when employers cannot observe workers' productivity and workers signal their productivity to firms by choosing both quantity and quality of education. We characterize constrained efficient allocations and derive conditions under which...

Persistent link: https://www.econbiz.de/10014490255

Crowdfunding in a competitive environment

Miglo, Anton - In: Journal of risk and financial management : JRFM 13 (2020) 3/39, pp. 1-38

Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms, Kickstarter and Indiegogo, as well as Amazon have...

Persistent link: https://www.econbiz.de/10012174171

Optimal short-time work : screening for jobs at risk

Teichgräber, Julian; Žužek, Simon; Hensel, Jannik - 2022

Short-time work - a wage subsidy conditional on hour reductions - has become an important tool of labor market policy in many European countries. As the scope of these policies expanded, concerns about side effects due to adverse selection increased. We develop a model of job retention policies...

Persistent link: https://www.econbiz.de/10012815443

Mixed signals : investment distortions with adverse selection

Darst, R. Matthew; Refayet, Ehraz - 2019

We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are distorted above perfect information allocations. By...

Persistent link: https://www.econbiz.de/10012181247

Insurance or Signals? An Experimental Analysis of Behaviour Under Risk

Mudambi, Ram - 2014

insurance often provide signals with regard to the individuals' underlying quality characteristics. Since the same action … weight of the mandatory final exam in the overall course grade. The literature on insurance markets predicts that poorer … students would take more pre-final tests (tests as insurance); and further that a greater number of pre-final tests would …

Persistent link: https://www.econbiz.de/10014068774

Delegation and Information Revelation

Gautier, Axel; Paolini, Dimitri - 2002

This paper addresses the question of delegation in a partial contracting set-up, where only the control over actions is contractible. We consider an organization that should take two decisions, affected by a common state of the world parameter only known by the agent. We show that, if the...

Persistent link: https://www.econbiz.de/10010263055

In Vino Veritas: The Economics of Drinking

Heufer, Jan - 2009

It is argued that drug consumption, most commonly alcohol drinking, can be a technology to give up some control over one's actions and words. It can be employed by trustworthy players to reveal their type. Similarly alcohol can function as a social lubricant and faciliate type revelation in...

Persistent link: https://www.econbiz.de/10010271394