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Incentive and Insurance Effects of Tax Financed Unemployment Insurance
Andersen, Torben M - C.E.P.R. Discussion Papers - 2010
The potential distortions of job-search incentives caused by unemployment benefits and their financing are well known …
Persistent link: https://www.econbiz.de/10008677233
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Structural Uncertainty and Central Bank Conservatism: The Ignorant Should Keep Their Eyes Shut
Rosal, Joao Mauricio; Spagat, Michael - C.E.P.R. Discussion Papers - 2002
We study the problem of a central bank whose policy actions simultaneously affect the information flow about its expectations-augmented Phillips curve and its reputation for toughness in fighting inflation. In an environment with an unknown relationship between inflation surprises and output,...
Persistent link: https://www.econbiz.de/10005497983
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Add-on Pricing, Naive Consumers, and the Hidden Welfare Costs of Education
Kosfeld, Michael; Schüwer, Ulrich - C.E.P.R. Discussion Papers - 2011
Previous research shows that firms shroud high add-on prices in competitive markets with naive consumers leading to inefficiency. We analyze the effects of regulatory intervention via educating naive consumers on equilibrium prices and welfare. Our model allows firms to shroud, unshroud, or...
Persistent link: https://www.econbiz.de/10009367427
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A Quantitative Analysis of the Retail Market for Illicit Drugs
Galenianos, Manolis; Gavazza, Alessandro - C.E.P.R. Discussion Papers - 2015
We develop a theoretical framework to study illicit drugs markets and we estimate it using data on purchases of crack cocaine. Buyers are searching for high-quality drugs, but they determine drugs' quality (i.e., their purity) only after consuming them. Hence, sellers can rip off first-time...
Persistent link: https://www.econbiz.de/10011145480
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Equilibrium selection in a fundamental model of money
Araujo, Luis; Guimarães, Bernardo - C.E.P.R. Discussion Papers - 2011
Fundamental models of money always exhibit autarkic equilibria where money has no value. In this paper we propose a simple procedure to select among equilibria in such models. Our procedure unveils a natural mapping between equilibrium behavior and the primitives of the economy, thus offering...
Persistent link: https://www.econbiz.de/10008854470
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Market Transparency, Competitive Pressure and Price Volatility
Kühn, Kai-Uwe; Martínez, Catalina B - C.E.P.R. Discussion Papers - 1996
In this paper we analyse the role of asymmetric information between firms and consumers about market conditions. In standard models of oligopoly informational advantages of firms over customers do not play a role because all prices are observable. When customers are unable to observe all...
Persistent link: https://www.econbiz.de/10005791781
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Information Gatekeepers: Theory and Experimental Evidence
Brocas, Isabelle; Carrillo, Juan D; Palfrey, Thomas R - C.E.P.R. Discussion Papers - 2009
We consider a model where two adversaries can spend resources in acquiring public information about the unknown state of the world in order to influence the choice of a decision maker. We characterize the sampling strategies of the adversaries in the equilibrium of the game. We show that, as the...
Persistent link: https://www.econbiz.de/10008528540
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Efficient Wage Dispersion
Acemoglu, Daron; Shimer, Robert - C.E.P.R. Discussion Papers - 1997
or more of the posted wages, i.e. search, before deciding where to apply. Both with homogeneous and heterogeneous forms …, equilibrium wage dispersion is necessary for the economy to approximate efficiency. Without wage dispersion, workers do not search …, and wages are depressed. As a result: (a) there is excessive entry of firms; and (b) because, in the absence of search …
Persistent link: https://www.econbiz.de/10005124074
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The Low-Skill, Bad-Job Trap
Snower, Dennis J. - C.E.P.R. Discussion Papers - 1994
The paper explains how a country can fall into a 'low-skill, bad-job trap', in which workers acquire insufficient training and firms provide insufficient skilled vacancies. In particular, the paper argues that in countries where a large proportion of the workforce is unskilled, firms have little...
Persistent link: https://www.econbiz.de/10005124126
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Do Consumers Search for the Highest Price? Equilibrium and Monopolistic Optimum in Differentiated Products Markets
Schulz, Norbert; Stahl, Konrad - C.E.P.R. Discussion Papers - 1995
We develop a model of search among substitutes for the best combination of commodity variant and price, in which the … structure of search costs can be manipulated by the suppliers of these variants, e.g. by joining an existing market or opening a …
Persistent link: https://www.econbiz.de/10005136540