An Example of Non-Existence of Riley Equilibrium in Markets with Adverse Selection PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download An Example of Non-Existence of Riley Equilibrium in Markets with Adverse Selection PDF full book. Access full book title An Example of Non-Existence of Riley Equilibrium in Markets with Adverse Selection by Eduardo M. Azevedo. Download full books in PDF and EPUB format.
Author: Eduardo M. Azevedo
Publisher:
ISBN:
Category :
Languages : en
Pages : 7
Get Book Here
Book Description
Rothschild and Stiglitz (1976) proposed a model of a competitive market with adverse selection and showed that a (pure strategy) Nash equilibrium may not exist. Among the solutions proposed to deal with this problem, a particularly influential one is the notion of Riley (or reactive) equilibrium (Riley, 1979). We give an example that shows that, when consumers are not ordered along a single dimension of heterogeneity in the typical sense of higher types being willing to pay more for additional insurance, a Riley equilibrium may also not exist.
Author: Eduardo M. Azevedo
Publisher:
ISBN:
Category :
Languages : en
Pages : 7
Get Book Here
Book Description
Rothschild and Stiglitz (1976) proposed a model of a competitive market with adverse selection and showed that a (pure strategy) Nash equilibrium may not exist. Among the solutions proposed to deal with this problem, a particularly influential one is the notion of Riley (or reactive) equilibrium (Riley, 1979). We give an example that shows that, when consumers are not ordered along a single dimension of heterogeneity in the typical sense of higher types being willing to pay more for additional insurance, a Riley equilibrium may also not exist.
Author: Daphne R. Raban
Publisher: Edward Elgar Publishing
ISBN: 1802203966
Category : Business & Economics
Languages : en
Pages : 579
Get Book Here
Book Description
The Elgar Companion to Information Economics dexterously navigates this interdisciplinary field of research which celebrates the crucial contribution of information to decision making, market dynamics, and economic well-being. Offering a wealth of conceptual analysis, this erudite Companion embarks on an intellectual journey exploring the fundamentals of information economics. This title contains one or more Open Access chapters.
Author: Marcello Messori
Publisher: Edward Elgar Publishing
ISBN: 9781781959985
Category : Business & Economics
Languages : en
Pages : 264
Get Book Here
Book Description
An Italian study group made up of seven economists report their findings on how the new Keynesian economics has reacted to challenges from new classical economics by strengthening the analytical power of its models. First they discuss the theoretical unde
Author: Georges Dionne
Publisher: Springer Science & Business Media
ISBN: 9401711682
Category : Business & Economics
Languages : en
Pages : 536
Get Book Here
Book Description
For a number of years, I have been teaching and doing research in the economics of uncertainty, information, and insurance. Although it is now possible to find textbooks and books of essays on uncertainty and in formation in economics and finance for graduate students and researchers, there is no equivalent material that covers advanced research in insurance. The purpose of this book is to fill this gap in literature. It provides original surveys and essays in the field of insurance economics. The contributions offer basic reference, new material, and teaching supple ments to graduate students and researchers in economics, finance, and insurance. It represents a complement to the book of readings entitled Foundations of Insurance Economics - Readings in Economics and Finance, recently published by the S.S. Huebner Foundation of Insurance Education. In that book, the editors (G. Dionne and S. Harrington) disseminate key papers in the literature and publish an original survey of major contributions in the field.
Author: Georges Dionne
Publisher: Springer Science & Business Media
ISBN: 9401006423
Category : Business & Economics
Languages : en
Pages : 980
Get Book Here
Book Description
In the 1970's, the research agenda in insurance was dominated by optimal insurance coverage, security design, and equilibrium under conditions of imperfect information. The 1980's saw a growth of theoretical developments including non-expected utility, price volatility, retention capacity, the pricing and design of insurance contracts in the presence of multiple risks, and the liability insurance crisis. The empirical study of information problems, financial derivatives, and large losses due to catastrophic events dominated the research agenda in the 1990's. The Handbook of Insurance provides a single reference source on insurance for professors, researchers, graduate students, regulators, consultants, and practitioners, that reviews the research developments in insurance and its related fields that have occurred over the last thirty years. The book starts with the history and foundations of insurance theory and moves on to review asymmetric information, risk management and insurance pricing, and the industrial organization of insurance markets. The book ends with life insurance, pensions, and economic security. Each chapter has been written by a leading authority in insurance, all contributions have been peer reviewed, and each chapter can be read independently of the others.
Author: Bruce C. N. Greenwald
Publisher: Routledge
ISBN: 0429657412
Category : Business & Economics
Languages : en
Pages : 312
Get Book Here
Book Description
First published in 1979. This thesis describes the theoretical impact on labour markets of a process of adverse selection similar to that described in outline by George Arthur Akerlof. It concerns the information conveyed to potential employers by the fact that any new worker, except for one just entering the labour force, has either left or is prepared to leave his latest Job. If an employer is able to identify his good workers more accurately than the market at large and is generally successful in retaining them, then the group of workers leaving him will contain a disproportionately small number of good ones. For similar reasons this pool should also contain an unusually large number of bad workers who have been either flied or induced to quit. Thus, workers who change jobs should on average be less able ones. Since the market failures that result have potentially significant consequences in the labour market, this study is devoted to examining their influence on the structure of wages and job tenure, and on the operation and efficiency of labour markets. This title will be of great interest to students of economics and business studies.
Author: Joseph E. Stiglitz
Publisher: OUP Oxford
ISBN: 019155992X
Category : Business & Economics
Languages : en
Pages : 768
Get Book Here
Book Description
This is the first volume in a new, definitive, six-volume edition of the works of Joseph Stiglitz, one of today's most distinguished and controversial economists. Stiglitz was awarded the Nobel Prize in Economics in 2001 for his work on asymmetric information and is widely acknowledged as one of the pioneers in the field of modern information economics and more generally for his contributions to microeconomics. Volume I includes a number of classic papers which helped to form the foundations for the field of the economics of information. Stiglitz reflects on his work and the field more generally throughout the volume by including substantial original introductions to the Selected Works, the volume as a whole, and each part within the volume. The volume includes a number of foundational papers, specifically looking at market equilibrium with adverse selection, moral hazard, and screening. This volume sets out the basic concepts underlying the economics of information, while volume II goes a step further by applying and extending these concepts in a number of different settings in labour, capital, and product markets.
Author: Sushil Bikhchandani
Publisher: Cambridge University Press
ISBN: 1107433762
Category : Business & Economics
Languages : en
Pages : 509
Get Book Here
Book Description
There has been explosive progress in the economic theory of uncertainty and information in the past few decades. This subject is now taught not only in departments of economics but also in professional schools and programs oriented toward business, government and administration, and public policy. This book attempts to unify the subject matter in a simple, accessible manner. Part I of the book focuses on the economics of uncertainty; Part II examines the economics of information. This revised and updated second edition places a greater focus on game theory. New topics include posted-price markets, mechanism design, common-value auctions, and the one-shot deviation principle for repeated games.
Author: Paul Milgrom
Publisher: Cambridge University Press
ISBN: 1139449168
Category : Business & Economics
Languages : en
Pages : 378
Get Book Here
Book Description
This book provides a comprehensive introduction to modern auction theory and its important new applications. It is written by a leading economic theorist whose suggestions guided the creation of the new spectrum auction designs. Aimed at graduate students and professionals in economics, the book gives the most up-to-date treatments of both traditional theories of 'optimal auctions' and newer theories of multi-unit auctions and package auctions, and shows by example how these theories are used. The analysis explores the limitations of prominent older designs, such as the Vickrey auction design, and evaluates the practical responses to those limitations. It explores the tension between the traditional theory of auctions with a fixed set of bidders, in which the seller seeks to squeeze as much revenue as possible from the fixed set, and the theory of auctions with endogenous entry, in which bidder profits must be respected to encourage participation.
Author:
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 700
Get Book Here
Book Description
