-
作者：Jeong, Seungwon (Eugene)
作者单位：University of Bristol
摘要：In auctions with externalities, it is well-known that the core can be empty, which is undesirable both in terms of stability and fairness. Nevertheless, some auction outcome must be chosen. We separate deviations into two types: deviations by paying more and deviations by refusing to pay. In high-stakes auctions where bidders also care about their reputation, the latter are unlikely to occur, or else can be prevented by legal interventions. In contrast, the former is more undesirable in the se...
-
作者：Bourgeon, Jean-Marc; Picard, Pierre
作者单位：INRAE; Institut Polytechnique de Paris; ENSAE Paris; Ecole Polytechnique
摘要：We analyze how insurance law can mitigate moral hazard by allowing insurers to reduce or cancel coverage in some circumstances. We consider an incomplete contract setting in which the insurer may obtain information related to the policyholder's behavior through a costly audit of the circumstances of the loss. Court decisions are based on a standard of proof such as the balance of probabilities. We show that an optimal insurance law brings efficiency gains compared to the no-audit case. We also...
-
作者：Ale-Chilet, Jorge; Atal, Juan Pablo
作者单位：Bar Ilan University; University of Pennsylvania
摘要：We study a recent case where most gynecologists in one city formed a trade association to bargain for better rates with insurance companies. After unsuccessful negotiations, the physicians jointly terminated their insurer contracts and set a minimum price. We find that subsequent realized prices coincided with Nash-Bertrand prices, and that the minimum price was barely binding. We show that these actions ensured the association's stability and increased profits. Our findings shed light on the ...
-
作者：Conlon, Christopher; Gortmaker, Jeff
作者单位：New York University; Harvard University
摘要：Differentiated products demand systems are a workhorse for understanding the price effects of mergers, the value of new goods, and the contribution of products to seller networks. Berry, Levinsohn, and Pakes (1995) provide a flexible random coefficients logit model which accounts for the endogeneity of prices. This article reviews and combines several recent advances related to the estimation of BLP-type problems and implements an extensible generic interface via the PyBLP package. Monte Carlo...
-
作者：Choi, Jay Pil; Mukherjee, Arijit
作者单位：Michigan State University; Yonsei University
摘要：We explore the optimal disclosure policy of a certification intermediary where (i) the seller decides on entry and investment in product quality, and (ii) the buyers observe an additional public signal on quality. The optimal policy maximizes rent extraction from the seller by trading off incentives for entry and investment. We identify conditions under which full, partial or no disclosure can be optimal. The intermediary's report becomes noisier as the public signal gets more precise, but if ...
-
作者：Hinnosaar, Toomas; Kawai, Keiichi
作者单位：University of Nottingham; University of New South Wales Sydney
摘要：Before purchase, a buyer of an experience good learns about the product's fit using various information sources, including some of which the seller may be unaware of. The buyer, however, can conclusively learn the fit only after purchasing and trying out the product. We show that the seller can use a simple mechanism to take best advantage of the buyer's post-purchase learning to maximize his guaranteed-profit. We show that this mechanism combines a generous refund, which performs well when th...
-
作者：Archsmith, James; Gillingham, Kenneth T.; Knittel, Christopher R.; Rapson, David S.
作者单位：University System of Maryland; University of Maryland College Park; Yale University; Massachusetts Institute of Technology (MIT); University of California System; University of California Davis
摘要：Roughly three quarters of vehicles are purchased into multi-car households. We study whether households are willing to substitute attributes, such as fuel economy, across vehicles within their portfolio. We develop a novel strategy to separately identify idiosyncratic preferences for an attribute from these within-portfolio effects. Using the universe of household vehicle registration records in California over a 6-year period, we find that two-car households exhibit strong substitution across...
-
作者：Fischer, Paul E.; Heinle, Mirko S.; Smith, Kevin C.
作者单位：University of Pennsylvania; Stanford University
摘要：We consider a cheap-talk setting with two senders and a continuum of receivers with heterogenous preferences. Each receiver is constrained to listen to one of the senders but can choose which sender to listen to. The introduction of a second sender facilitates more informative communication and even enables full communication for a large set of sender preference pairs. We use the model to assess the size and characteristics of sender audiences, the amount of information communicated, and the i...
-
作者：Chen, Ying; Eraslan, Huelya
作者单位：Johns Hopkins University; Rice University; University of Osaka
摘要：A decision maker makes a ruling on a random case in each period. She is uncertain about the correct ruling until conducting a costly investigation. A ruling establishes a precedent, which cannot be violated under binding precedent. We compare the information acquisition incentives, the evolution of standards and the social welfare under nonbinding and binding precedents. Compared to nonbinding precedent, under binding precedent, information acquisition incentives are stronger in earlier period...
-
作者：Wang, James
作者单位：Federal Reserve System - USA
摘要：I evaluate how loan officers screen uncodified, soft information using data from China. After documenting substantial differences in loan decisions and outcomes across loan officers, I develop and estimate a screening model incorporating screening ability and beliefs regarding ability. Estimates imply that the typical loan officer is risk-averse, has heterogeneous screening ability, and behaves overconfidently-behaving as if he or she observes more from soft information than what the data woul...
