Decision Making Under Asymmetric Information in Markets for Experience Goods

Decision Making Under Asymmetric Information in Markets for Experience Goods
Author: Daniel Kaimann
Publisher:
Total Pages: 0
Release: 2015
Genre:
ISBN:

In four different chapters, I describe how signals of quality affect consumer perceptions and derive managerial implications and suggestions for future research. However, I focus on the analysis and the comparison of expressed opinions of professional critics and word-of-mouth and on the study of the commercial success of brand extension products and franchise titles. The four analyses of the entertainment market do not only differ in terms of the film and video game industry but also by the econometric approaches combining classical variable-oriented analyses and novel qualitative comparative analyses of signals. Variable-oriented analysis focuses on the empirical identification of the net effects of independent variables on one or more dependent variables. In variable-oriented analyses, linear, additive models test causality and are primarily based on correlation relationships. In contrast, qualitative comparative analysis studies causation with set-theoretic relationships. Whereas variable-oriented analysis is based on linear, additive models and thus on single paths that lead to the outcome of interest, qualitative comparative analysis is able to model multiple distinct causal paths to the outcome. In conclusion, this research introduces two different approaches for quantifying signaling effects that influence the purchase decisions of customers under asymmetric information. Using proprietary data from the motion-picture and video game industry, we specifically show that brand extension strategies and critical reviews from both professional critics and word-of-mouth may lead to high market performance. ; eng

Asymmetric Information and the Market Structure of the Banking Industry

Asymmetric Information and the Market Structure of the Banking Industry
Author: Mr.Giovanni Dell'Ariccia
Publisher: International Monetary Fund
Total Pages: 32
Release: 1998-06-01
Genre: Business & Economics
ISBN: 145195154X

The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs.

Asset Pricing Under Asymmetric Information

Asset Pricing Under Asymmetric Information
Author: Markus Konrad Brunnermeier
Publisher: Oxford University Press, USA
Total Pages: 264
Release: 2001
Genre: Business & Economics
ISBN: 9780198296980

The role of information is central to the academic debate on finance. This book provides a detailed, current survey of theoretical research into the effect on stock prices of the distribution of information, comparing and contrasting major models. It examines theoretical models that explain bubbles, technical analysis, and herding behavior. It also provides rational explanations for stock market crashes. Analyzing the implications of asymmetries in information is crucial in this area. This book provides a useful survey for graduate students.

Asymmetric Information in Financial Markets

Asymmetric Information in Financial Markets
Author: Ricardo N. Bebczuk
Publisher: Cambridge University Press
Total Pages: 176
Release: 2003-08-21
Genre: Business & Economics
ISBN: 9780521797320

Asymmetric information (the fact that borrowers have better information than their lenders) and its theoretical and practical evidence now forms part of the basic tool kit of every financial economist. It is a phenomenon that has major implications for a number of economic and financial issues ranging from both micro and macroeconomic level - corporate debt, investment and dividend policies, the depth and duration of business cycles, the rate of long term economic growth - to the origin of financial and international crises. Asymmetric Information in Financial Markets aims to explain this concept in an accessible way, without jargon and by reducing mathematical complexity. Using elementary algebra and statistics, graphs, and convincing real-world evidence, the author explores the foundations of the problems posed by asymmetries of information in a refreshingly accessible and intuitive way.

The Oxford Handbook of Gossip and Reputation

The Oxford Handbook of Gossip and Reputation
Author: Francesca Giardini
Publisher: Oxford University Press
Total Pages: 547
Release: 2019-05-22
Genre: Social Science
ISBN: 0190494093

Gossip and reputation are core processes in societies and have substantial consequences for individuals, groups, communities, organizations, and markets.. Academic studies have found that gossip and reputation have the power to enforce social norms, facilitate cooperation, and act as a means of social control. The key mechanism for the creation, maintenance, and destruction of reputations in everyday life is gossip - evaluative talk about absent third parties. Reputation and gossip are inseparably intertwined, but up until now have been mostly studied in isolation. The Oxford Handbook of Gossip and Reputation fills this intellectual gap, providing an integrated understanding of the foundations of gossip and reputation, as well as outlining a potential framework for future research. Volume editors Francesca Giardini and Rafael Wittek bring together a diverse group of researchers to analyze gossip and reputation from different disciplines, social domains, and levels of analysis. Being the first integrated and comprehensive collection of studies on both phenomena, each of the 25 chapters explores the current research on the antecedents, processes, and outcomes of the gossip-reputation link in contexts as diverse as online markets, non-industrial societies, organizations, social networks, or schools. International in scope, the volume is organized into seven sections devoted to the exploration of a different facet of gossip and reputation. Contributions from eminent experts on gossip and reputation not only help us better understand the complex interplay between two delicate social mechanisms, but also sketch the contours of a long term research agenda by pointing to new problems and newly emerging cross-disciplinary solutions.

Asymmetric Information, Corporate Finance, and Investment

Asymmetric Information, Corporate Finance, and Investment
Author: R. Glenn Hubbard
Publisher: University of Chicago Press
Total Pages: 354
Release: 2009-05-15
Genre: Business & Economics
ISBN: 0226355942

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.

The Behavioral and Social Sciences

The Behavioral and Social Sciences
Author: National Research Council
Publisher: National Academies Press
Total Pages: 301
Release: 1988-02-01
Genre: Science
ISBN: 0309037492

This volume explores the scientific frontiers and leading edges of research across the fields of anthropology, economics, political science, psychology, sociology, history, business, education, geography, law, and psychiatry, as well as the newer, more specialized areas of artificial intelligence, child development, cognitive science, communications, demography, linguistics, and management and decision science. It includes recommendations concerning new resources, facilities, and programs that may be needed over the next several years to ensure rapid progress and provide a high level of returns to basic research.

Underwriting Services and the New Issues Market

Underwriting Services and the New Issues Market
Author: George J. Papaioannou
Publisher: Academic Press
Total Pages: 334
Release: 2017-07-27
Genre: Business & Economics
ISBN: 0128032839

Underwriting Services and the New Issues Market integrates practice, theory and evidence from the global underwriting industry to present a comprehensive description and analysis of underwriting practices. After covering the regulation and mechanics of the underwriting process, it considers economic topics such as underwriting costs and compensation, the pricing of new issues, the stock price and operating performance of issuing firms, the evaluation of new issue decisions, and an analysis of the many choices issuers face in structuring new issues. Unlike other books, it systematically develops a critical perspective about underwriting practices, both in the U.S. and international markets, and with a level of detail unavailable elsewhere and an approach that reveals how financial institutions deliver underwriting services. Underwriting Services and the New Issues Market delivers an innovative and long overdue look at security issuance. Foreword by Frank Fabozzi - Covers underwriting contracts and arrangements on pricing and costs - Focuses on the financial consequences of the issuance decision for the firm - Describes and evaluates decisions regarding the features and structure of new security offerings.

The Microeconomics of Complex Economies

The Microeconomics of Complex Economies
Author: Wolfram Elsner
Publisher: Academic Press
Total Pages: 599
Release: 2014-04-15
Genre: Business & Economics
ISBN: 0124115993

The Microeconomics of Complex Economies uses game theory, modeling approaches, formal techniques, and computer simulations to teach useful, accessible approaches to real modern economies. It covers topics of information and innovation, including national and regional systems of innovation; clustered and networked firms; and open-source/open-innovation production and use. Its final chapter on policy perspectives and decisions confirms the value of the toolset. Written so chapters can be used independently, the book includes an introduction to computer simulation and pedagogical supplements. Its formal, accessible treatment of complexity goes beyond the scopes of neoclassical and mainstream economics. The highly interdependent economy of the 21st century demands a reconsideration of economic theories. - Describes the usefulness of complex heterodox economics - Emphasizes divergences and convergences with neoclassical economic theories and perspectives - Fits easily into courses on intermediate microeconomics, industrial organization, and games through self-contained chapters

The Economics of Imperfect Markets

The Economics of Imperfect Markets
Author: Giorgio Calcagnini
Publisher: Springer Science & Business Media
Total Pages: 237
Release: 2009-10-22
Genre: Business & Economics
ISBN: 3790821314

This book is a collection of eleven papers concerned with the effects of market imperfections on the decision-making of economic agents and on economic policies that try to correct the inefficient market outcomes due to those imperfections. As a consequence, real and financial imperfections are related : economic decisions are simultaneously affected by imperfections present both in real and financial markets. Notwithstanding the obvious fact that market interdependence is not novel, scholar interests are typically concentrated on the specific relationship among economic decisions originating from particular imperfections. This explains why, in the case of perfect financial markets, we can speak of "the" us.