Title:Responsive Pricing
Author(s):COURTY, Pascal; PAGLIERO, MarioDate:2003Type of Publication:Working PaperSeries/Report no.:Discussion Pape
Title:Responsive Pricing
Author(s):COURTY, Pascal; PAGLIERO, MarioDate:2008Type of Publication:ArticleAbstract:Abstract We study the efficiency property of responsive pricing, a scheme that proposes to increase prices as a function of the level of capacity utilization in environments where traditional allocation schemes (e.g. ...
Title:Revenue Comparison in Asymmetric Auctions with Discrete Valuations
Author(s):DONI, Nicola; MENICUCCI, DomenicoDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We consider an asymmetric auction setting with two bidders such that the valuation of each bidder has a binary support. We prove that in this context the second price auction yields a higher expected revenue than the first ...
Title:The Right Amount of Trust
Author(s):BUTLER, Jeffrey V.; GIULIANO, Paola; GUISO, LuigiDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:A vast literature has investigated the relationship between trust and aggregate economic performance. We investigate the relationship between individual trust and individual economic performance. We find that individual ...
Title:Risk Attitudes and Measures of Value for Risky Lotteries
Author(s):LEWANDOWSKI, MichalDate:2010Type of Publication:ThesisSeries/Report no.:EUI PhD thesesAbstract:The topic of this thesis is decision-making under risk. I focus my analysis on expected utility theory by von Neumann and Morgenstern. I am especially interested in modeling risk attitudes represented by Bernoulli utility ...
Title:Risk Aversion, Wealth, and Background Risk
Author(s):GUISO, Luigi; PAIELLA, MonicaDate:2008Type of Publication:ArticleAbstract:We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumer's endowments and attributes ...
Title:Risk Aversion, Wealth, and Background Risk
Author(s):GUISO, Luigi; PAIELLA, MonicaDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumers.endowments and attributes ...
Title:Risk Preference and Indirect Utility in Portfolio-Choice Problems
Author(s):ROY, Santanu; WAGENVOORT, Rien J.L.M.Date:1996Type of Publication:ArticleAbstract:We consider a portfolio-choice problem with one risky and one safe asset, where the utility function exhibits decreasing absolute risk aversion (DARA). We show that the indirect utility function of the portfolio-choice ...
Title:Risk-sharing and contagion in networks
Author(s):CABRALES, Antonio; GOTTARDI, Piero; VEGA-REDONDO, FernandoDate:2013Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:The aim of this paper is to investigate how the capacity of an economic system to absorb shocks depends on the specific pattern of interconnections established among financial firms. The key trade-off at work is between ...
Title:Risk-Sharing and Retrading in Incomplete Markets
Author(s):GOTTARDI, Piero; RAHI, RohitDate:2012Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:At a competitive equilibrium of an incomplete-markets economy agents’ marginal valuations for the tradable assets are equalized ex-ante. We characterize the finest partition of the state space conditional on which this ...