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Contract enforcement does not only affect single transactions but the market as a whole. We compare alternative institutions that allocate enforcement rights to the different parties to a credit transaction: either lenders, borrowers, or judges. Despite all parties having incentives to enforce...
Persistent link: https://www.econbiz.de/10014050946
experiment that varies freelance professionals’ incentives to attract attention about scientific findings, with several online …
Persistent link: https://www.econbiz.de/10015402019
Who gets to determine rights and justice? Which mechanism of judicial selection and accountability is optimal? There is no easy answer. If judges are independent experts, nominated and evaluated by their peers, they will be immune from the pressures of electoral rent-seeking, but unaccountable...
Persistent link: https://www.econbiz.de/10013048640
Prosecutors are immensely influential in every judicial system, yet very little is known about the impact of their organization. Here we ask two questions: (1) whether crimes committed by public officials are more likely to be prosecuted when prosecutors are independent, and (2) whether this...
Persistent link: https://www.econbiz.de/10011729503
Trust is full of puzzle and paradox. Trust is both rational and emotional. Trust can go beyond calculative self-interest, but has its limits. People may want to trust, while they may also feel threatened by it. If trust is not in place prior to a relationship, on the basis of institutions, prior...
Persistent link: https://www.econbiz.de/10014065501
This paper investigates robust information transmission between a sender and a receiver in the Crawford and Sobel (1982) model. We characterize behavior that remains equilibrium behavior independently of the form of a small communication cost. Under standard conditions, we find that an...
Persistent link: https://www.econbiz.de/10014076683
This paper lays down a model where dispersed information generates booms and busts in economic activity. Boom-and-bust dynamics start when firms are initially over-optimistic about demand due to an aggregate noise shock in their signals. Consequently, they over-produce, which generates a boom....
Persistent link: https://www.econbiz.de/10010223138
This paper studies asset markets where buyers of assets do not inherit private information from previous owners and must learn asset quality over time. Imperfect information transmission reduces asymmetric information, but also reduces the trading volume, prices and efficiency. This result is...
Persistent link: https://www.econbiz.de/10013005245
Household finances are confidential and discussions are limited to a subset of peers. We collect representative survey data to examine whether interactions with inner and outer social circles influence return perceptions, expectations, and exposure to a widely known financial instrument in a...
Persistent link: https://www.econbiz.de/10012852382
This paper studies information transmission in a two-sender, multidimensional cheap talk setting where there are exogenous constraints on the (convex) feasible set of policies for the receiver and where the receiver is uncertain about both the directions and the magnitudes of the senders' bias...
Persistent link: https://www.econbiz.de/10012158784