Optimal Contracts and Competitive Markets with Costly ...
u > 0, independent of the actual realization; this specification is pursued ...... "Decision and Organization," C. B. McGuire and R. Radner, eds., Amsterdam,.
University, Hong Kong University of Science and Technology, Indian Statistical Institute. (Delhi Centre), Koç .... However, there are good reasons for these types .... decisions, bidders already possess their private information, i.e., they know.
Jan 27, 2017 - The second component ODE, (6), forces volatility Y to be zero. The only incentive compatible action under Y = 0 is the zero-effort action a = 0. ...... The next auxiliary lemma confirms that a = 0 is only used when the contract is dete
Apr 4, 1997 - Albuquerque acknowledges the financial support from the Doctoral ... optimal contract has thus implications on the growth of firms and exit ...
Apr 8, 2015 - In addition, the analysis emphasizes contract design constraints such ...... black solid lines show the evolution of the employment relationship in ...
Feb 3, 2010 - Communication (cont.) Allowing the Principal to communicate with the Agent may change the result if correlation is high. Effective independence to get rid of learning problem: Zheng. (GEB 2008), Obara (JET 2009). Bingyong Zheng. Optimal
Cheng Wang, Ruqu Wang and seminar participants at Fudan, Indian Statistical Institute, Oregon. State, Shanghai Jiaotong, Tsinghua, UIBE, and the 2009 Canadian Economic Theory conference for comments. We also thank the editor and two anonymous referee
Mar 8, 2010 - â¡Leonard Stern School of Business, Kaufman Management Center, 44 West .... they are significantly more complicated to set up and administer ...
part in a government program carries a stigma, and outside options are .... show that bailouts can be designed so as not to distort ex-ante lending incentives.
We begin by considering the contract offered by the government. With this aim, let (t*,t*0,Ï*,Ï*0) denote a set of equilibrium contracts. Taking as given the incentive scheme designed by the interest group (i.e., the values, Ï*,Ï*0), the governme
an interest group, in addition to the contract designed by the government. We ..... Financial support from the Ministerio de Educación y Ciencia of Spain [Grant ...
The continuity guarantees that a VsmallV change of the timing or the prize size brings also VsmallV change in the payoff. When agent i makes the effort, he has to specify his problem solving method which determines the time to find a solution t-. The
Feb 7, 2012 - as an incentive to induce the optimal risk$taking level which ... risky method, an agent with lower status quo technology uses the risky method.
payday loans at a lower price, or offer a different product with a price/characteristic mix .... a good metric of the loan markup when financing costs are the .... right now that test suggests a negative answer. ... phone survey mentioned in the pre-
unions covered in the data, roughly 6 percent (479) offered pay- day loans; by June, ... credit unions via phone calls, starting from a list of 250 credit unions randomly .... It is well known that in credit markets, firms that set lower prices (typi
is enough to make money essential even if agents trade in a centralized market. ... equivalence theorem holds in the monetary economy with fixed money supply ...
Aug 1, 2013 - Sonat âstated that other parties had expressed interest in a business combination ...... No sale to a noninspecting bidder occurs before the final period, since the option to .... The item is a startup with a novel tanning technology.
complete risk$sharing, providing a rich yet tractable framework for monetary policy ...... We will show that for a big set of parameter values, this last term is relatively .... 19Our estimates of Ï from long$term U.S. and U.K. GDP data, range from
Keywords: asymmetric information, dynamic mechanism design, stochastic processes, convergence to efficiency, variational approach. âFor useful comments and suggestions we thank participants at various conferences and workshops where the paper has b
electricity supply contracts.1 Package bidding, in which .... Milgrom model of package bidding, we specify ... Our analysis of matching models emphasizes.
Feb 3, 2011 - Based on quantitative analysis, the model suggests that the re& .... data on consumer credit for a large sample of countries over an adequately ...