-
作者：Luo, Xiao; Qiao, Yongchuan
作者单位：National University of Singapore
摘要：We show, by means of a counterexample, that Propositions 3, 4, and 7 in Gul (1996) [G96] are incorrect. Our example is also a counterexample to Lemma 1 in G96, which is the basis for the proofs of these propositions. We provide insight for the source of the problem in the definition of a perfect tau-theory in G96, and then offer a modification that restores these results in G96. (C) 2016 Elsevier Inc. All rights reserved.
-
作者：Diecidue, Enrico; Somasundaram, Jeeva
作者单位：INSEAD Business School
摘要：We present a new behavioral foundation for regret theory. The central axiom of this foundation trade-off consistency - renders regret theory observable at the individual level and makes our foundation consistent with a recently introduced empirical and quantitative measurement method. Our behavioral foundation allows deriving a continuous regret theory representation and separating utility from regret. The axioms in our behavioral foundation clarify that regret theory minimally deviates from e...
-
作者：Ambrus, Attila; Egorov, Georgy
作者单位：Duke University; Northwestern University
摘要：In many contracting settings, actions costly to one party but with no direct benefits to the other (money burning) may be part of the explicit or implicit contract. A leading example is bureaucratic procedures in an employer employee relationship. We study a model of delegation with an informed agent, where the principal may impose money-burning on the agent as a function of the agent's choice of action, and show that money-burning may be part of the optimal contract. This result holds even if...
-
作者：Gizatulina, Alia; Hellwig, Martin
作者单位：University of St Gallen; Max Planck Society
摘要：McAfee and Reny (1992) have given a necessary and sufficient condition for full surplus extraction in naive type spaces with a continuum of payoff types. We generalize their characterization to arbitrary abstract type spaces and to the universal type space and show that in each setting, full surplus extraction is generically possible. We interpret the McAfee Reny condition as a much stronger version of injectiveness of belief functions and prove genericity by arguments similar to those used to...
-
作者：Maestri, Lucas
摘要：We study the effects of renegotiation in an infinitely-repeated screening model with long-term contracts. We propose a simple and tractable recursive formulation to study equilibria in which the monopolist's profit is maximized after every history. We show that the monopolist sequentially screens high-type consumers and characterize second-degree price discrimination policies. The monopolist's ability to extract rent from high-type consumers by distorting the allocation of low-type consumers v...
-
作者：Fleurbaey, Marc; Zuber, Stephane
作者单位：Princeton University; Princeton University; Paris School of Economics; Centre National de la Recherche Scientifique (CNRS)
摘要：We provide a general method for extending social preferences defined for riskless economic environments to the context of risk and uncertainty. We apply the method to the problems of managing unemployment allowances (in the context of macroeconomic fluctuations) and catastrophic risks (in the context of climate change). The method guarantees ex post fairness and pays attention to individuals' risk attitudes, while ensuring rationality properties for social preferences, revisiting basic ideas f...
-
作者：Kim, Kyungmin
作者单位：University of Miami
摘要：This paper studies the role of time-on-the-market information in dynamic trading environments under adverse selection. I consider a sequential search model in which (informed) sellers receive price offers from (uninformed) buyers and analyze both the case in which buyers receive no information about sellers' trading histories and the case in which buyers observe sellers' time-on-the-market. I analyze how the observability of time-on-the-market influences agents' trading behavior and investigat...
-
作者：Prummer, Anja; Siedlarek, Jan-Peter
作者单位：University of London; Queen Mary University London; Federal Reserve System - USA; Federal Reserve Bank - Cleveland
摘要：We explain persistent differences in cultural traits of immigrant groups with the presence of community leaders. Leaders influence the cultural traits of their community, which have an impact on the group's earnings. They determine whether a community will be more assimilated and wealthier or less assimilated and poorer. With a leader cultural integration remains incomplete. The leader chooses more distinctive cultural traits in high productivity environments and if the community is more conne...
-
作者：Mangin, Sephorah
作者单位：Monash University
摘要：This paper develops a search-theoretic model of the labor market in which heterogeneous firms compete directly to hire unemployed workers. This process of direct competition simultaneously determines both the expected match output and workers' effective bargaining power. The framework delivers a unified aggregate production and matching technology, and firms are paid both productivity rents and matching rents. Both the curvature of the endogenous production technology and the distribution of o...
-
作者：Giraud, Raphael; Thomas, Lionel
作者单位：Universite Marie et Louis Pasteur
摘要：We investigate the effect of ambiguity and ambiguity attitude on the shape and properties of the optimal contract in an adverse selection model with a continuum of types, using the NEO-additive model. We show that it necessarily features efficiency and a jump at the top and pooling at the bottom of the distribution. Conditional on the degree of ambiguity, the pooling section may be supplemented by a separating section. As a result, ambiguity adversely affects the principal's ability to solve t...
