Economics Commons^™

The Effect Of Bidders’ Asymmetries On Expected Revenue In Auctions, Estelle Cantillon

Cowles Foundation Discussion Papers

Bidders’ asymmetries are widespread in auction markets. Yet, their impact on behavior and, ultimately, revenue and profits is still not well understood. In this paper, I define a natural benchmark auction environment to which to compare any private value auction with asymmetrically distributed valuations. I show that the expected revenue from the benchmark auction always dominates that from the asymmetric auction, both in the first price auction and the second price auction. These results formalize and make transparent the idea that competition is reduced by bidders’ asymmetries. The paper also contributes to a better understanding of competition and the nature …

Entry And Vertical Differentiation, Dirk Bergemann, Juuso Välimäki

Cowles Foundation Discussion Papers

This paper analyzes the entry of new products into vertically differentiated markets where an entrant and an incumbent compete in quantities. The value of the new product is initially uncertain and new information is generated through purchases in the market. We derive the (unique) Markov perfect equilibrium of the infinite horizon game under the strong long run average payoff criterion. The qualitative features of the optimal entry strategy are shown to depend exclusively on the relative ranking of established and new products based on current beliefs. Superior products are launched relatively slowly and at high initial prices whereas substitutes for …

Are Invisible Hands Good Hands? Moral Hazard, Competition, And The Second-Best In Health Care Markets, Martin Gaynor, Deborah Haas-Wilson, William B. Vogt

Economics: Faculty Publications

The nature and normative properties of competition in health care markets have long been the subject of much debate. In this paper we consider what the optimal benchmark is in the presence of moral hazard effects on consumption due to health insurance. Intuitively, it seems that imperfect competition in the health care market may constrain this moral hazard by increasing prices. We show that this intuition cannot be correct if insurance markets are competitive. A competitive insurance market will always produce a contract that leaves consumers at least as well off under lower prices as under higher prices.

Economic Currents: The State Of The State Economy, Alan Clayton-Matthews

Public Policy and Public Affairs Faculty Publication Series

Between June 1999 and July 2000, the Federal Reserve raised the federal funds rate six times, for a total increase of 175 basis points. For this and other reasons, the national — and state — ␣economies appear to be growing at a slower rate.

The Economics Of Medicare Reform, Andrew J. Rettenmaier, Thomas Robert Saving

Employment Research Newsletter

No abstract provided.

The State Of The Region: Hampton Roads 2000, James V. Koch, Aditi Agarwal, Vinod Agarwal, Rebecca Bowers, Steve Daniel, Michele Darby, John Gawne, Beth Herders, Jeffrey Harlow, Tatiana Isakovski, Sharon Lomax, Helen Madden, Stephen Medvic, Deborah L. Miller, Wayne Talley, Gilbert Yochum

Economics Faculty Books

Those who know and love the region of Hampton Roads wish to make it an even better place to live than it is currently. In order for us to achieve that end, we must know literally "where we are" in critical areas. This first "State of the Region" Report is designed to provide citizens with a detailed, though not burdensome, look at several critical aspects of the lives we live in Hampton Roads. The Report focuses on topics such as the regional economy (including the tourist and military sectors), the workforce, K-12 education, technology, and of course, government and regional …

Why Employers Use Flexible Staffing Arrangements: Evidence From An Establishment Survey, Susan N. Houseman

Upjohn Institute Working Papers

This paper examines which employers use flexible staffing arrangements, why they use these arrangements, and their implications for workers and public policy, drawing on a nationally representative survey of private sector establishments. Use of flexible staffing arrangements-including temporary help agency, short-term, on-call, regular part-time, and contract workers-is widespread and two-thirds of employers believe this use will increase in the near future. Traditional reasons concerning the need to accommodate fluctuations in workload or absences in staff are the most commonly cited reasons for using all types of flexible staffing arrangements. Many employers also use agency temporaries and part-time workers to screen …

Chinese Privatization: Between Plan And Market, Lan Cao

Faculty Publications

No abstract provided.

Using Gis To Evaluate The Effects Of Flood Risk On Residential Property Values, Alena Bartosova, David E. Clark, Vladimir Novotny, Kyra S. Taylor

Economics Faculty Research and Publications

Annually, flooding causes more property damage in the United States than any other type of natural disaster. One of the consequences of continued urbanization is the tendency for floodplains to expand, increasing flood risks in the areas around urban streams and rivers. Hedonic modeling techniques can be used to estimate the relationship between residential housing prices and flood risks. One weakness of hedonic modeling has been incomplete controls for locational characteristics influencing a given property. In addition, relatively primitive assumptions have been employed in modeling flood risk exposures.

We use GIS tools to provide more accurate measures of flood risks, …

U.S. Corporations In Globalization, John B. Davis, Joseph P. Daniels

Economics Faculty Research and Publications

No abstract provided.

Solving The Many Problems With Inner City Jobs, Timothy J. Bartik

Upjohn Institute Working Papers

Inner-city business development is often proposed as a solution to inner-city poverty. However, research evidence suggests that creating new jobs in the inner city is unlikely by itself to significantly increase the employment or earnings of the inner city poor. Public subsidies for inner city business development may be justified by greater environmental, congestion, and fiscal benefits of inner city vs. suburban business location decisions. The research evidence suggests that some boost in inner city business development may be provided by a combination of economic development incentives with enhanced public services. A different set of policies must be used to …

Nationalism In The People's Republic Of China: A Consequential Chameleon, Ibpp Editor

International Bulletin of Political Psychology

This article describes how nationalism among political leaders in the People's Republic of China (PRC) can be the linchpin of divergent views on the desirability of the PRC's future in a globalized economy.

Ua12/2/1 Career Expo, Wku Student Affairs

WKU Administration Documents

Magazine issue of College Heights Herald printed for the Career Exposition.

• Employers Attending WKU Career Expo 2000
• Harrison, Christy. Career Expo 2000 to Give Western Students, Alumni Job, School Opportunities
• Career Services Offerings
• The Job Market for the Class of 2001

Agriculture Land Assessment In South Dakota And Neighboring States, T. J. Hansen

Economics Commentator (1972- 2016)

No abstract provided.

Agriculture Land Assessment In South Dakota And Neighboring States, T. J. Hansen

Economics Commentator (1972- 2016)

No abstract provided.

Trends. Common Currency On Currency Interventions In A Global Economy: Psychological Considerations, Ibpp Editor

International Bulletin of Political Psychology

This article discusses government interventions in economies in the context of a global economy. While economists usually assume actors to be rational, the author notes that this may not be the case with human belief systems and actions.

Environmental Finance Charette, Hyannis Park On Lewis Bay: A Case Study, New England Environmental Finance Center, Environmental Finance Center Of University Of Maryland

Water

The town of Yarmouth currently has a $30 million septic sludge treatment plant and transport lines in place. The vast majority of the dwellings and businesses in the Hyannis Park area are on septic systems that are viable and Title 5 compliant, regardless of age. Conventional, "non-failing" septic systems, however, were never intended to remove form their effluent nutrients such as nitrogen. These have become recognized as an environmental threat only as our understanding of the impacts of excess nutrients on ecosystems has increased in recent decades.

Replication: Regressive Reproduction Or Progressive Evolution?, Graham Wright

Journal of Microfinance / ESR Review

Increasing numbers of organizations are "replicating" the programs of successful microfinance institutions (MFIs). This approach allows rapid start-up using tested models and systems. These strengths are also weaknesses, though, since the models being replicated usually require substantial modifications to make them appropriate for local conditions. Furthermore, close adherence to "blueprints" is likely to substitute for careful research into the needs and opportunities for the provision of financial services to the poor--and thus the design of appropriate systems. Replication also risks the suppression of innovative ways of providing still better financial services--particularly when promoted by powerful apex funding organizations, as is …

Impact Assessment Of Microfinance And Organizational Learning: Who Will Survive?, James G. Copestake

Journal of Microfinance / ESR Review

To what extent is it possible for organizations to reflect honestly on their own performance, draw appropriate conclusions, and then act on them? For many microfinance organizations this is now a question of survival. This paper argues that formal impact assessment can assist in the transition from donor-controlled replication projects to autonomous and adaptable organizations--but it often fails to do so. Pitfalls include inadequate attention to methodological detail and to the links between impact assessment and wider aspects of organizational change. The paper starts by highlighting the complexity of the overall task to which impact assessment is expected to contribute. …

Vol. 02 No. 2 Journal Of Microfinance, Journal Of Microfinance

Journal of Microfinance / ESR Review

No abstract provided.

Front Matter, Journal Of Microfinance

Journal of Microfinance / ESR Review

No abstract provided.

Banking On Customer Loyalty, Craig Churchill

Journal of Microfinance / ESR Review

Enhancing customer loyalty is a microfinance institution's most important business strategy. Every critical element involved in managing microfinance operations--from product pricing to staff incentives, from marketing to eligibility requirements, from client screening to the menu of available services--can (and should) be formulated to promote loyalty. While most MFIs recognize the importance of client retention, few have designed business strategies to maximize customer loyalty. Hopefully that will change. This article details the economic impact that customer loyalty has on a microfinance institution (and the negative effect of desertion).

Moving Microenterprises Beyond A Subsistence Plateau, Beth C. Haynes, Kristie K. Seawright, William C. Giauque

Journal of Microfinance / ESR Review

Enthusiasm for microcredit programs has increased during the past decade. The attention these programs have drawn stems philosophically from progress in cultivating self-sufficiency among those in abject poverty, and practically from the viability and high loan repayment rates of many microfinance institutions. The programs assume that lack of capital is the main barrier to the economic progress of the poor. The lack of entrepreneur business management experience and training, however, may create a barrier equally powerful and limit the growth potential of microenterprises. Microcredit programs could foster even greater economic progress by ensuring that clients receive appropriate human capital development. …

Book Review- Microfinance And Poverty: Questioning The Conventional Wisdom By Hege Gulli, Lisa M. Jones

Journal of Microfinance / ESR Review

No abstract provided.

Microfinance In The United States: The Working Capital Experience— Ten Years Of Lending And Learning, Jeffrey Ashe

Journal of Microfinance / ESR Review

Working Capital is the United States' largest peer-group lending program. This article reviews what Working Capital has learned about the market, its customers, program impact, and service delivery over its ten year history. It presents a model for understanding how participating in peer lending groups develops “social and economic capital” in poor communities. The article then discusses how participants judge the group model as they identify the characteristics of successful groups and the impact of the group on their businesses, on themselves personally, and on the larger community. The rest of the article discusses how Working Capital evolved from a …

Capital Enhancement Guarantees And Risk Management By Capital-Constrained Lenders, J.D. Von-Pischke

Journal of Microfinance / ESR Review

Commercial lenders require capital to bear risk. The capital enhancement guarantee (CEG) encourages lenders to make loans they would not otherwise make, such as microenterprise loans. The CEG is auctioned and awarded to bidders who promise the greatest amount of new lending for a given increment of permanent capital. Whether the incremental lending causes losses or gains for the lender, the incremental capital is free. The CEG subsidizes innovation in risk management. It places the analytical focus on risk and its cost, supports the key party to the lending decision, promotes skill in managing risk, is transparent, minimizes moral hazard, …

Models Of Economic And Financial Crises, Roberto S. Mariano, Bulent N. Gultekin, Suleyman Ozmucur, Tayyeb Shabbir

Topics in Middle Eastern and North African Economies

No abstract provided.

Prices And Real Wages In The Middle East, 1469 To 1914 , Sevket Pamuk

Topics in Middle Eastern and North African Economies

No abstract provided.

Equilibrium Level Of The Real Exchange Rate And The Duration And Magnitude Of The Misalignments For Turkey , C. Emre Alper, Ismail Saglam

Topics in Middle Eastern and North African Economies

No abstract provided.

Institutional Reform And Efficiency Of The Budget Process: A Case Study Of Morocco , Cherkaoui Mouna

Topics in Middle Eastern and North African Economies

No abstract provided.