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  1. The hold-up problem with flexible unobservable investments
    Author: Krähmer, Daniel
    Published: February 2024
    Publisher:  ECONtribute, [Bonn]

    The paper studies the canonical hold-up problem with one-sided investment by the buyer and full ex post bargaining power by the seller. The buyer can covertly choose any distribution of valuations at a cost and privately observes her valuation. The... more

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    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    DS 711
    Inter-library loan:
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    The paper studies the canonical hold-up problem with one-sided investment by the buyer and full ex post bargaining power by the seller. The buyer can covertly choose any distribution of valuations at a cost and privately observes her valuation. The main result shows that in contrast to the well-understood case with linear costs, if investment costs are strictly convex in the buyer's valuation distribution, the buyer's equilibrium utility is strictly positive and total welfare is strictly higher than in the benchmark when valuations are public information, thus alleviating the hold-up problem. In fact, when costs are mean-based or display decreasing risk, the hold-up problem may disappear completely. Moreover, the buyer's equilibrium utility and total welfare might be non-monotone in costs. The paper utilizes an equilibrium characterization in terms of the Gateaux derivative of the cost function.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/285340
    Series: ECONtribute discussion paper ; no. 278
    Subjects: Information Design; Hold-Up Problem; Unobservable Information
    Scope: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  2. Persuasion, posteriors & polymatroids
    Author: Nguyen Thành; Vohra, Rakesh V.
    Published: August 1, 2024
    Publisher:  Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, Philadelphia, PA

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    Keine Rechte
    Inter-library loan:
    No inter-library loan
    Export to reference management software   RIS file
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: PIER working paper ; 24, 025
    Subjects: Bayesian Persuasion; Information Design; Polymatroids
    Scope: 1 Online-Ressource (circa 18 Seiten)