Results 211 to 220 of about 547,479 (275)

Evidence Gathering Under Competitive and Noncompetitive Rewards

open access: yesJournal of Economics &Management Strategy, EarlyView.
ABSTRACT Reward schemes may affect not only agents' effort but also their incentives to gather information in order to reduce the riskiness of the productive activity. In a laboratory experiment using a novel task, we find that the relationship between incentives and evidence gathering depends critically on the availability of information about peers ...
Philip Brookins   +2 more
wiley   +1 more source

Exploitation and Screening by Two‐Part Tariffs With Biased Beliefs of Consumers

open access: yesJournal of Economics &Management Strategy, EarlyView.
ABSTRACT This paper examines the design of two‐part tariffs when consumers have biased beliefs about their demand. Two forms of biases are analyzed: overpessimism, where high‐valuation consumers underestimate demand, and overoptimism, where low‐valuation consumers overestimate it. With overpessimists, marginal prices for low types are distorted upward:
Koji Ishibashi
wiley   +1 more source

Choosing to Know Less: Strategic Ignorance as a Commitment Device in Vertical Markets with Demand Shocks

open access: yesJournal of Economics &Management Strategy, EarlyView.
ABSTRACT This paper examines how a retailer's strategic decision to remain uninformed about market demand can influence outcomes in vertical markets. Rather than treating information acquisition as a straightforward cost‐benefit calculation, we show that staying deliberately ignorant may serve as a strategic commitment device that softens upstream ...
Peter Habiger, Michael Kopel
wiley   +1 more source

Precautionary Saving against Correlation under Risk and Ambiguitya

open access: yesJournal of Money, Credit and Banking, EarlyView.
Abstract This paper considers precautionary saving against the correlation between two risky attributes (wealth and health) and investigates how the correlation affects optimal savings under multivariate preferences. The signs of higher‐order cross‐derivatives play a key role in determining the direction of precautionary saving against such correlation.
TAKAO ASANO, YUSUKE OSAKI
wiley   +1 more source

Unequal and Unstable: Income Inequality and Bank Risk

open access: yesJournal of Money, Credit and Banking, EarlyView.
Abstract We present a model in which income inequality interacts with banks' risk‐taking incentives, generating financial instability. Competition and deposit insurance cause some banks to lend to lower‐income borrowers at underpriced rates, creating “risky banks” that fail in downturns, while others lend to higher‐income borrowers and avoid default ...
YULIYAN MITKOV, ULRICH SCHÜWER
wiley   +1 more source

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