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Registros recuperados: 12 | |
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Kushnir, Alexey. |
A costless signaling mechanism has been proposed as a device to improve welfare in decentralized two-sided matching markets. An example of such an environment is a job market for new Ph.D. economists. We study a market game of incomplete information between firms and workers and show that costless signaling is actually harmful in some matching markets. Specifically, if agents have very similar preferences, signaling lessens the total number of matches and the welfare of firms, as well as it affects ambiguously the welfare of workers. These results run contrary to previous findings that costless signaling facilitates match formation. |
Tipo: Working or Discussion Paper |
Palavras-chave: Matching Markets; Signaling; Institutional and Behavioral Economics; C70. |
Ano: 2009 |
URL: http://purl.umn.edu/50730 |
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Babus, Ana. |
Modern banking systems are highly interconnected. Despite their various benefits, the linkages that exist between banks carry the risk of contagion. In this paper we investigate how banks decide on direct balance sheet linkages and the implications for contagion risk. In particular, we model a network formation process in the banking system. Banks form links order to reduce the risk of contagion. The network is formed endogenously and serves as an insurance mechanism. We show that banks manage to form networks that are resilient to contagion. Thus, in an equilibrium network, the probability of contagion is virtually 0. |
Tipo: Working or Discussion Paper |
Palavras-chave: Financial Stability; Network Formation; Contagion Risk; Financial Economics; C70; G21. |
Ano: 2007 |
URL: http://purl.umn.edu/9100 |
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Fosco, Constanza; Mengel, Friederike. |
We develop a simple model to study the coevolution of interaction structures and action choices in Prisoners’ Dilemma games. Agents are boundedly rational and choose both actions and interaction partners via payoff-based imitation. The dynamics of imitation and exclusion yields polymorphic outcomes under a wide range of parameters. Depending on the parameters of the model two scenarios can arise. Either there is “full separation” of defectors and cooperators, i.e. they are found in two different, disconnected components. Or there is “marginalization” of defectors, i.e. connected networks emerge with a center of cooperators and a periphery of defectors. Simulations confirm our analytical results and show that the share of cooperators increases with the... |
Tipo: Working or Discussion Paper |
Palavras-chave: Game Theory; Cooperation; Imitation Learning; Network Formation; Institutional and Behavioral Economics; C70; C73; D85. |
Ano: 2009 |
URL: http://purl.umn.edu/50723 |
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Registros recuperados: 12 | |
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