Market Equilibrium with Information Intermediaries PDF Download
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Author: Diogo José Fernandes Homem de Lucena
Publisher:
ISBN:
Category : House buying
Languages : en
Pages : 264
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Book Description
Author: Diogo José Fernandes Homem de Lucena
Publisher:
ISBN:
Category : House buying
Languages : en
Pages : 264
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Book Description
Author: Diogo J. Lucena
Publisher:
ISBN:
Category :
Languages : en
Pages : 246
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Book Description
Author: Frank Rose
Publisher: Springer Science & Business Media
ISBN: 3642998054
Category : Business & Economics
Languages : en
Pages : 280
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Book Description
The Internet provides an infrastructure that makes the steadily increasing amount of information accessible efficiently, quickly, and inexpensively. Closely connec ted with this opportunity is the danger that the available information will over charge the individual information seeker's capability to process the information and to judge its quality. In this situation, information intermediaries can take upon the role of an expert and a guarantor of quality similar to intermediaries in markets for physical goods or finances. Thus, information intermediaries can be a trust worthy, information processing third party, mediating between information seekers and information sources. The current technological development has created information technologies that are capable to efficiently process large amounts of information. However, the pro vision of intermediation services necessitates a thorough examination of the basic principles underlying the economics of information intermediaries as well as a sound foundation on information technologies. The present work by Frank Rose addresses the fundamental question concerning the economics of information intermediaries by means of an abstract model. The model focuses on services that concentrate on the search and mediation of information, and identifies the essential influencing factors of the intermediary's environment. The model is then employed to investigate the impact of environmental conditions on the information intermediary on the one hand, and the optimal strategy of the information intermediary as a reaction to environmental conditions on the other hand.
Author: Daniel F. Spulber
Publisher: Cambridge University Press
ISBN: 9780521659789
Category : Business & Economics
Languages : en
Pages : 412
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Book Description
Professor Spulber demonstrates how the intermediation theory of the firm explains firm formation by showing why firms arise in a market equilibrium with costly transactions. In addition, the theory helps explain how markets work by.
Author: Fabrizio Mattesini
Publisher: Dartmouth Publishing Company
ISBN:
Category : Business & Economics
Languages : en
Pages : 208
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Book Description
The study of the interaction between the financial sector and the sector of the economy is one of the most recent advances in macroeconomic theory. While mainstream economics assigns a passive role to the financial sector there is a growing body of literature which emphasizes the importance of financial intermediaries in explaining fluctuations and the determination of the process through which monetary policy impulses are transmitted to the rest of the economy. This literature has its origin in the models that rely on asymmetric information to explain imperfections in financial markts and in empirical evidence collected through various econometric techniques and through historical studies. This book surveys the relevant work ion the subject, evaluates the empirical evidence and the explanatory power of the theories proposed and furnishes new and empirical results.
Author: Jon Strand
Publisher:
ISBN: 9788257084325
Category :
Languages : en
Pages : 28
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Book Description
Author: James R. Tybout
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 30
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Book Description
Author: Annette Hofmann
Publisher: VVW GmbH
ISBN: 3862981134
Category : Business & Economics
Languages : en
Pages : 191
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Book Description
The focus of this thesis is on consumer diversity. Incorporating consumer heterogeneity into economic analysis is well-established in industrial organization literature; this aspect is, however, often neglected in microeconomic insurance models. A first new approach lies in analyzing risk interdependencies. When risks are interdependent, an agent's decision to self-protect affects the loss probabilities faced by others. Due to these externalities, economic agents invest too little in prevention relative to the socially efficient level by ignoring marginal external costs or benefits conferred on others. We analyze an insurance market with externalities of loss prevention. It is shown in a model with heterogenous agents and imperfect information that a monopolistic insurer can achieve the social optimum by engaging in premium discrimination. An insurance monopoly reduces not only costs of risk selection, but may also play an important social role in loss prevention. This result can be empirically confirmed. We also deal with the impact of intermediation on insurance market transparency and performance. In a differentiated insurance market under imperfect information, uninformed consumers may become informed about product suitability by consulting an intermediary. We analyze current broker compensation systems: commissions and fees. While insurers' equilibrium profits are equivalent under both systems, social welfare under fees is first-best efficient. Both systems may offer the opportunity to increase profits via collusion. Under a commission system, collusion enables insurers to separate consumers into groups purchasing different contracts. Insurers may then extract additional rents from some consumers. This might explain why intermediaries tend to be compensated by insurers in practice. Finally, we study optimal monopoly pricing given imperfect information and heterogenous policyholders. Die in englischer Sprache verfasste Arbeit ist der mikroökonomischen Analyse von Versicherungsmärkten gewidmet. Zunächst werden einige wichtige theoretische Grundlagen der Versicherungsnachfragetheorie beschrieben. Eine zentrale Erweiterung des Basismodells stellen interdependente Risiken dar. Bestehen Risikointerdependenzen, so sind alle Maßnahmen, die die Schadenshäufigkeit reduzieren, mit positiven externen Effekten verbunden. Es wird gezeigt, dass im Gleichgewicht das realisierte Präventionsniveau unterhalb des optimalen Niveaus angesiedelt ist. Aufgrund der Externalitäten kommt es zu einem Marktversagen und nur ein Monopolversicherer kann eine differenzierte Prämienstruktur herbeiführen, die zum optimalen Präventionsniveau führt. Dieses Ergebnis kollidiert mit dem Ergebnis, dass wettbewerbliche Versicherungsmärkte zu einer höheren Gesamtwohlfahrt führen, es lässt sich jedoch empirisch stützen. Ein weiterer Schwerpunkt der Arbeit liegt auf unvollkommenen Versicherungsmärkten, wobei heterogene Versicherungsnachfrager mit unterschiedlichen Produktpräferenzen und Informationskosten unterstellt werden. In einem solchen Markt erhöhen Versicherungsvermittler die Markttransparenz und damit auch die Gewinne der Versicherer. Im Mittelpunkt steht die Analyse verschiedener Vergütungsformen der Vermittler. Ein Vergütungssystem auf Basis von Beratungshonoraren ist einem Provisionssystem aus wohlfahrtsökonomischer Perspektive vorzuziehen. Aus Sicht der Versicherer kehrt sich dieses Ergebnis allerdings um, sobald es zur Kollusion zwischen Versicherern und Vermittlern kommt. Der letzte Schwerpunkt liegt in der Analyse einer optimalen Preispolitik eines Versicherungsmonopolisten bei heterogenen Nachfragern, die sich durch ihre Risikopräferenzen und damit ihre individuelle Zahlungsbereitschaft für Versicherungen unterscheiden.
Author: Wei Wang (Economist)
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 0
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Book Description
Information technology greatly facilitates investors' access to information. Its impact on the financial markets depends on (1) how the information is produced (producer side); (2) how investors interpret the information (consumer side). The three chapters investigate the impact of information production on the financial market from these two angles.Chapter 1 studies asset prices and portfolio choices in an exchange economy with an information market. Two providers decide the information quality and price and compete for investors. I demonstrate that when investors are heterogeneous in the costs of using information, an equilibrium exists where ex-ante homogeneous information producers differentiate from ex-post. This equilibrium is not socially optimal. The information quality gap and disagreement are higher in the market equilibrium than in the social optimum. However, the equity return volatility is not necessarily higher. The impacts on stock prices are asymmetric when the information quality gap enlarges. Although disagreement increases in both cases, the equity return volatility is lower when low-quality information deteriorates. When high-quality information improves, the equity return volatility is higher.Chapter 2 investigates the effects of bot-generated tweets on stock prices and the economic mechanism. Using a Twitter-bot detector developed by Observatory on Social Media (OSoMe), BotometerLite, we find that the bot score has predictability about future returns. The predictability lasts for one day and then fades away. The predictability gets reverted in three days, indicating that this predictability is a result of investors' overreaction. The impulse response functions show that human-generated tweet numbers react stronger to bot-generated tweet numbers than bots' reactions to human activity. Cross-sectional analysis shows that small firms have more salient predictability, consistent with the limit of arbitrage.Chapter 3 quantifies the size of uninformed investors by measuring market overreaction. Using texts in 10-Ks of SP500 constituents, I conduct a topical decomposition of managerial tones and find that market reaction is more sensitive to informative topics' tones. A structural estimation shows that uninformed investors account for only 1.06%, pushing the excess return by 0.03 basis points. Overall, investors are selective in processing public information, and market overreaction to managerial tones is insignificant.
Author: David H. Autor
Publisher: University of Chicago Press
ISBN: 0226032906
Category : Business & Economics
Languages : en
Pages : 456
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Book Description
From the traditional craft hiring hall to the Web site Monster.com, a multitude of institutions exist to facilitate the matching of workers with firms. The diversity of such Labor Market Intermediaries (LMIs) encompasses criminal records providers, public employment offices, labor unions, temporary help agencies, and centralized medical residency matches. Studies of Labor Market Intermediation analyzes how these third-party actors intercede where workers and firms meet, thereby aiding, impeding, and, in some cases, exploiting the matching process. By building a conceptual foundation for analyzing the roles that these understudied economic actors serve in the labor market, this volume develops both a qualitative and quantitative sense of their significance to market operation and worker welfare. Cross-national in scope, Studies of Labor Market Intermediation is distinctive in coalescing research on a set of market institutions that are typically treated as isolated entities, thus setting a research agenda for analyzing the changing shape of employment in an era of rapid globalization and technological change.
