Search results for "information asymmetry"
showing 10 items of 45 documents
Making sense of crises: the implications of information asymmetries for resilience and social justice in disaster-ridden communities
2017
New information and communication technologies (ICT) have enabled communities to collect and share information and tap into a network of peers in unprecedented ways. For more than a decade, informa...
Another "French paradox": explaining why interest rates to microenterprises dit not increase with the change in French usury legislation
2015
Conventional wisdom indicates that the growth of credit may not materialize if credit rates remain capped by usury laws, as had long been the case in France. France therefore abolished usury ceilings on loans to microenterprise in an effort to increase financing for microentrepreneurs. This should have led to an increase in interest rates and increase in microcredit. However, we do not find any increase in interest rates and this is therefore a paradox. The paper provides a brief literature review and the salient features of the legislative changes in France. It follows this up with a presentation of interest rate movements. The discussion of possible explanations of the paradox includes cl…
The Separating Role of Collateral Requirements in Credit Markets with Asymmetric Information
2001
In this paper we test Bester's (1985, 1987) prediction about the separating role of contracts that involve both interest rates and collateral requirements in credit markets. To test this prediction we use data from natural credit markets and controlled experiments. Using a sample of credits to small and medium size firms in Valencia, Spain, we relate two different types of contracts with the ex post risk type of the borrower and other relevant variables. We then design two incentive compatible contracts and analyze decisions under two different experimental treatments, one with moral hazard. Our empirical results confirm that borrowers of ex post lower risk choose contracts with higher coll…
Consumer interest in information regarding novel food technologies in Italy: The case of irradiated foods
2018
Recent food crises and uncertainty regarding food quality have pushed consumers towards a growing need to know more about the foods they purchase, including information related to both food quality and production. This paper identifies the main factors affecting consumer interest in receiving information on food irradiation technology. An online survey was used for research purposes and a total of 392 people, living in Italy, were questioned. Findings revealed that 89.2% of Italian consumers are interested in receiving information on the treatment of foods with ionizing radiation aimed at raising product safety. In particular, this interest was greater for respondents who reported a high se…
AgriChain: Blockchain Syntactic and Semantic Validation for Reducing Information Asymmetry In Agri-Food
2022
Information asymmetry affects the actors of all the segments of the agri-food supply chain and can arise many problems in the market along the production chain. Transactions of agri-food products are asymmetric because suppliers and buyers have different levels of knowledge on the provenance, value, quality, and freshness of food. Collusive relations among the agri-food chain actors, especially between controllers companies and controlled ones, can cause market failures as they influence customers’ purchase decisions and severe health accidents when food safety is compromised. This paper proposes using blockchain technology to combat information asymmetry and collusive relations. In additio…
On relationship types, their strength, and reward crowdfunding backer behavior
2023
ispartof: JOURNAL OF BUSINESS RESEARCH vol:154 status: published
Capital structure decisions in the biotechnology industry: the role of R&D collaborations with pharmaceutical incumbents
2011
This study focuses on the importance of collaborative R&D attitudes of biotech firms in the capital structure determination. Specifically, we investigate the short term impact of R&D agreements on financial leverage and we analyze whether this relationship depends on alliances’ features and the type and characteristics of the partners involved. Our results suggest that agreements with established pharmaceutical incumbents are followed by a reduction in the level of debt, while collaborations with biotech firms do not play a significant role, at least in the short term. However, different explanations are plausible. Our findings could be consistent with an “extension” of the pecking order th…
Upward and Downward Limit Pricing: The Role of Post-Entry Competition
2005
Under asymmetric information, entry-deterring strategies by an incumbent monopolist can consist of deviations from its static monopoly price through downward deviations termed downward limit pricing, or upward deviations termed upward limit pricing. Our analysis shows that the mode of post-entry competition influences the range of situations in which an incumbent adopts a strategy of downward limit pricing instead of an upward one: this range is greater under price than under output competition; it is decreasing in the degree of product differentiation; and with homogeneous product only downward limit pricing emerges under price competition, while upward limit pricing can still take place w…
Collusion constrained equilibrium
2018
We study collusion within groups in non-cooperative games. The primitives are the preferences of the players, their assignment to non-overlapping groups and the goals of the groups. Our notion of collusion is that a group coordinates the play of its members among different incentive compatible plans to best achieve its goals. Unfortunately, equilibria that meet this requirement need not exist. We instead introduce the weaker notion of collusion constrained equilibrium. This allows groups to put positive probability on alternatives that are suboptimal for the group in certain razor's edge cases where the set of incentive compatible plans changes discontinuously. These collusion constrained e…
Economic reasoning and creative industries progress
2017
ABSTRACTThis article offers a theoretical discussion on how major neoclassical economic theory assumptions blur the understanding of creative industries. By distinguishing between creative-rational and creative-intuitive industries, with different compositions of commercial and cultural attributes, we particularly show how the latter sector has characteristics and dynamics that are incompatible with a theory based on preference rationality, profit maximisation and equal access to information among actors. When customer utility is composed of economic, as well as aesthetic, spiritual, social, historical, symbolic and authenticity values, then all these will affect customers' willingness to p…