Class 2: Adverse Selection
نویسنده
چکیده
This set of lecture notes covers a general model of adverse selection as well as a leading example that of a price discriminating monopolist due to Maskin and Riley (1984). At the end of this unit, students should understand the application of the revelation principal to this class of models, the general solution techniques, and the key economic trade-o¤ e¢ ciency versus information rent savings.
منابع مشابه
The Effect of Deviation from Optimal Cash Level on Adverse Selection and Moral Hazard in Firms Listed on Tehran Stock Exchange
This study aims to investigate the impact of deviation from optimal level of cash holdings on adverse selection and moral hazard problems. The data set includes 106 listed firms of Tehran Stock Exchange during the period of 2005-2016 and both panel data and cross-sectional data multivariate regressions were utilized in different stage of analysis to test the hypotheses. According to the optimal...
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Balance sheet itself does not specify and show all the activities that a bank pays. Because banks can do many swap contracts and obligations, exchange, and commitments Outside of the balance sheet. To such activities and exchange that will not appear on the balance sheet, are saying off-balance sheet activities. These items are usually reported in the notes to the attached financial statements....
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This section presents a setup that arises frequently in adverse selection settings and provides conditions on the primitives such that the properties that de ne a game with monotone selection are satis ed. The following de nitions and results (in addition to those in the print appendix) are used: A correspondence : T ! X is increasing in the strong set order if when t > t0, then for each x 2 (t...
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This set of lecture notes covers a general model of adverse selection as well as a leading example that of a price discriminating monopolist due to Maskin and Riley (1984). At the end of this unit, students should understand the application of the revelation principal to this class of models, the general solution techniques, and the key economic trade-o¤ e¢ ciency versus information rent sav...
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Feature selection is considered as an important issue in classification domain. Selecting a good feature through maximum relevance criterion to class label and minimum redundancy among features affect improving the classification accuracy. However, most current feature selection algorithms just work with the centralized methods. In this paper, we suggest a distributed version of the mRMR featu...
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