The Economics of Asymmetric Information

Author: Brian Hillier

Publisher: Macmillan International Higher Education

ISBN: 1349254851

Category: Economics

Page: 208

View: 7510

This book presents recent developments in the economics of asymmetric information. The problems of selection and moral hazard, with hidden actions or hidden information, are introduced by examining how they affect the market for investment finance. The ideas are then used to analyse the market for insurance, signalling and screening models of education, efficiency wages, industrial regulation, public procurement and auctions. Coverage is thorough while avoiding excessive mathematical detail. Diagrams and verbal reasoning make the ideas accessible to intermediate level undergraduate students and beyond.

Asymmetric Information, Corporate Finance, and Investment

Author: R. Glenn Hubbard

Publisher: University of Chicago Press

ISBN: 0226355942

Category: Business & Economics

Page: 352

View: 8118

In this volume, specialists from traditionally separate areas in economics and finance investigate issues at the conjunction of their fields. They argue that financial decisions of the firm can affect real economic activity—and this is true for enough firms and consumers to have significant aggregate economic effects. They demonstrate that important differences—asymmetries—in access to information between "borrowers" and "lenders" ("insiders" and "outsiders") in financial transactions affect investment decisions of firms and the organization of financial markets. The original research emphasizes the role of information problems in explaining empirically important links between internal finance and investment, as well as their role in accounting for observed variations in mechanisms for corporate control.

Asymmetric Information in Financial Markets

Introduction and Applications

Author: Ricardo N. Bebczuk

Publisher: Cambridge University Press

ISBN: 9780521797320

Category: Business & Economics

Page: 159

View: 6788

Examination of the features and implications of asymmetric information in financial markets.

Economic Analysis of Contract Law

Incomplete Contracts and Asymmetric Information

Author: Sugata Bag

Publisher: Springer

ISBN: 3319652680

Category: Law

Page: 203

View: 3910

This book examines the main issues arising in economic analysis of contract law with special attention given to the incomplete contracts. It discusses both the main features of contract law as they relate to the problem of economic exchange, and how the relevant legal rules and the institutions can be analysed from an economic perspective. Evaluate the welfare impacts, analyses the effects and the desirability of different breach remedies and examines the optimal incentive structure of party-designed liquidated damages under the different dimensions of informational asymmetry. Overall the book aims to contribute to the legal debate over the adoption of the specific breach remedies when the breach victim’s expectation interest is difficult to assess, and to the debate over courts' reluctance to implement large penalties in the event of breach of contracts.

The Economics of missing markets, information, and games

Author: Frank Hahu

Publisher: Oxford University Press


Category: Business & Economics

Page: 511

View: 1593

This collection of papers is the result of a Cambridge University study of the consequences of missing markets, asymmetric information, market-dependent information, strategic market situations, and the role of quantity signals. The contributors also consider the behavior of overlapping generation models and their macroeconomic implications, providing a useful reference text on most of the main issues of current interest to economic theorists.

Information Economics

Author: Urs Birchler,Monika Bütler

Publisher: Routledge

ISBN: 1134190581

Category: Business & Economics

Page: 488

View: 8329

This new text book by Urs Birchler and Monika Butler is an introduction to the study of how information affects economic relations. The authors provide a narrative treatment of the more formal concepts of Information Economics, using easy to understand and lively illustrations from film and literature and nutshell examples. The book first covers the economics of information in a 'man versus nature' context, explaining basic concepts like rational updating or the value of information. Then in a 'man versus man' setting, Birchler and Butler describe strategic issues in the use of information: the make-buy-or-copy decision, the working and failure of markets and the important role of outguessing each other in a macroeconomic context. It closes with a 'man versus himself' perspective, focusing on information management within the individual. This book also comes with a supporting website (, maintained by the authors.

Economie de L'incertain Et de L'information

Author: Jean-Jacques Laffont

Publisher: MIT Press

ISBN: 9780262121361

Category: Business & Economics

Page: 289

View: 4274

Discusses risk and economic uncertainty, the theory of contingent markets, model systems of incomplete markets, and the use of the stock market and insurance to share risk

The Economics of Edwin Chadwick

Incentives Matter

Author: Robert B. Ekelund,Edward O. Price

Publisher: Edward Elgar Publishing

ISBN: 1781005044

Category: Political Science

Page: 264

View: 5580

'Economists owe a great debt to Ekelund and Price for making us aware of Edwin Chadwick's seminal contributions. Chadwick lived in the middle of the 19th century, but he anticipated many of the theoretical and practical advances that culminated in the law and economics revolution of the late 20th century. These include Coase's analysis of social cost and Demsetz's proposal for franchise bidding in natural monopolies. Read the summary of Chadwick's ideas about railroads and consider that Britain adopted many of them but only more than a century later (while the US continues to wallow in ignorance). The book is full of similar examples where Chadwick's prescience is extraordinary. Economists, legal scholars and practitioners, especially those working at the intersection of law and economics, will want to read this book.' – Sam Peltzman, University of Chicago, US Sir Edwin Chadwick (1800–1890) is hardly a household name among economists, although he is a well-known hero to sanitation engineers and utilitarian social reformers. His brilliant and cunning ideas relating to contemporary economic policy are illuminated for the first time in this pioneering study. The authors detail Chadwick's sophisticated conceptions of moral hazard, common pool problems, asymmetric information, and theory of competition, all of which differ starkly from those promulgated by Adam Smith and other classical economists. Also examined are Chadwick's views on government versus market role in dealing with problems created by natural monopoly, and whether some or all market problems justify government regulation or alterations of property rights. The authors investigate Chadwick's utilitarian approach to labor, business cycles, and economic growth, contrasting his modern view with those of his classical economic contemporaries. Chadwick's enormous output and cutting-edge methods undoubtedly establish him as an original and trenchant thinker in economic matters as well as a prophetic voice on contemporary issues in economics. This unique look at his less familiar research will interest academic regulatory economists, sociologists, students and scholars of law and economics, and all those interested in the fundamentals of social reform.

The Economics of Contracts

A Primer

Author: Bernard Salanié

Publisher: MIT Press

ISBN: 0262195259

Category: Business & Economics

Page: 244

View: 1298

A concise introduction to the theory of contracts, emphasizing basic tools that allow the reader to understand the main theoretical models; revised and updated throughout for this edition.

Markets Don't Fail!

Author: Emily Chamlee-Wright

Publisher: Lexington Books

ISBN: 0739157531

Category: Business & Economics

Page: 234

View: 697

Markets Don't Fail! addresses many of the popular arguments made by economists and other intellectuals against the free market. Using numerous examples as well as moral and epistemological arguments, this book claims that free market economies raise the standard of living of all individuals who live in them, and allow human life to flourish.

Artificial Intelligence and Economic Theory: Skynet in the Market

Author: Tshilidzi Marwala,Evan Hurwitz

Publisher: Springer

ISBN: 3319661043

Category: Computers

Page: 204

View: 1828

This book theoretically and practically updates major economic ideas such as demand and supply, rational choice and expectations, bounded rationality, behavioral economics, information asymmetry, pricing, efficient market hypothesis, game theory, mechanism design, portfolio theory, causality and financial engineering in the age of significant advances in man-machine systems. The advent of artificial intelligence has changed many disciplines such as engineering, social science and economics. Artificial intelligence is a computational technique which is inspired by natural intelligence concepts such as the swarming of birds, the working of the brain and the pathfinding of the ants. Artificial Intelligence and Economic Theory: Skynet in the Market analyses the impact of artificial intelligence on economic theories, a subject that has not been studied. It also introduces new economic theories and these are rational counterfactuals and rational opportunity costs. These ideas are applied to diverse areas such as modelling of the stock market, credit scoring, HIV and interstate conflict. Artificial intelligence ideas used in this book include neural networks, particle swarm optimization, simulated annealing, fuzzy logic and genetic algorithms. It, furthermore, explores ideas in causality including Granger as well as the Pearl causality models.

Asset Pricing under Asymmetric Information

Bubbles, Crashes, Technical Analysis, and Herding

Author: Markus K. Brunnermeier

Publisher: OUP Oxford

ISBN: 0191606928

Category: Business & Economics

Page: 262

View: 3913

Asset prices are driven by public news and information that is often dispersed among many market participants. These agents try to infer each other's information by analyzing price processes. In the past two decades, theoretical research in financial economics has significantly advanced our understanding of the informational aspects of price processes. This book provides a detailed and up-to-date survey of this important body of literature. The book begins by demonstrating how to model asymmetric information and higher-order knowledge. It then contrasts competitive and strategic equilibrium concepts under asymmetric information. It also illustrates the dependence of information efficiency and allocative efficiency on the security structure and the linkage between both efficiency concepts. No-Trade theorems and market breakdowns due to asymmetric information are then explained, and the existence of bubbles under symmetric and asymmetric information is investigated. The remainder of the survey is devoted to contrasting different market microstructure models that demonstrate how asymmetric information affects asset prices and traders' information , which provide a theoretical explanation for technical analysis and illustrate why some investors "chase the trend." The reader is then introduced to herding models and informational cascades, which can arise in a setting where agents' decision-making is sequential. The insights derived from herding models are used to provide rational explanations for stock market crashes. Models in which all traders are induced to search for the same piece of information are then presented to provide a deeper insight into Keynes' comparison of the stock market with a beauty contest. The book concludes with a brief summary of bank runs and their connection to financial crises.

Contributions to Insurance Economics

Author: Georges Dionne

Publisher: Springer Science & Business Media

ISBN: 9401711682

Category: Business & Economics

Page: 524

View: 5972

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.

Economics of Asymmetric Information

Author: Dilip M. Nachane,Biswajit Chatterjee

Publisher: Deep and Deep Publications

ISBN: 9788176298261

Category: Information theory in economics

Page: 234

View: 4498

Contributed papers presented at the one of the technical sessions of Indian Economic Association's 85th conference held at the Kerala University in 2002.

Financial Economics

Author: Jürgen Eichberger,Ian R. Harper

Publisher: Oxford University Press on Demand

ISBN: 9780198775409

Category: Business & Economics

Page: 260

View: 3921

Financial Economics provides a comprehensive introduction to an exciting new field of economics for advanced undergraduate and postgraduate economists and finance specialists. It develops the main arguments in finance theory from an explicitly economic perspective. Economists can see how finance theory can be applied to economics, while finance specialists can appreciate the economic foundations of their favourite results in finance. The authors stress the theories of decision-making under uncertainty and of asymmetric information.

The Economics of Imperfect Markets

The Effects of Market Imperfections on Economic Decision-Making

Author: Giorgio Calcagnini,Enrico Saltari

Publisher: Springer Science & Business Media

ISBN: 9783790821314

Category: Business & Economics

Page: 234

View: 358


The Economics of Information

Lying and Cheating in Markets and Organizations

Author: Ian Molho

Publisher: Wiley-Blackwell

ISBN: 9780631206668

Category: Business & Economics

Page: 276

View: 6653

Knowledge is a vital resource which confers strategic advantages on those that possess it, and provides the possibility of misuse and abuse with increasingly dangerous economic consequences.

Games and Information

An Introduction to Game Theory

Author: Eric Rasmusen

Publisher: Wiley-Blackwell

ISBN: 1405136669

Category: Business & Economics

Page: 558

View: 3223

Written in a crisp and approachable style, Games and Information uses simple modeling techniques and straightforward explanations to provide students with an understanding of game theory and information economics. Written for introductory courses seeking a little rigor. The 4th edition brings the material fully up-to-date and includes new end-of-chapter problems and classroom projects, as well as a math appendix. Accompanied by a comprehensive website featuring solutions to problems and teaching notes.