scholarly journals Vertical Contracting with Informational Opportunism

2015 ◽  
Vol 105 (7) ◽  
pp. 2141-2182 ◽  
Author(s):  
Vianney Dequiedt ◽  
David Martimort
Keyword(s):  
Private Information ◽  
Incentive Compatibility ◽  
Yardstick Competition ◽  
Trade Off ◽  
Bilateral Contracts ◽  
Ex Post ◽  
Wide Range ◽  
New Form ◽  
Correlated Information ◽  
Vertical Contracting

We consider vertical contracting arrangements between a manufacturer and a retailing network when retailers have private information and the organization is run through bilateral contracts. We highlight a new form of informational opportunism arising when the manufacturer manipulates information learned separately in each relationship. We characterize the set of allocations robust to such opportunism by means of simple ex post incentive compatibility constraints. Those constraints limit the manufacturer's ability to use yardstick competition among retailers. They simplify contracts and restore a rent/efficiency trade-off even with correlated information. We show that sell-out contracts are optimal under a wide range of circumstances. (JEL D21, D86, L14, L60, L81)

scholarly journals A dominant strategy double clock auction with estimation‐based tâtonnement

2021 ◽  
Vol 16 (3) ◽  
pp. 943-978
Author(s):  
Simon Loertscher ◽  
Claudio Mezzetti
Keyword(s):  
Private Information ◽  
Asymptotic Efficiency ◽  
Incentive Compatibility ◽  
Dominant Strategy ◽  
Demand And Supply ◽  
Strategy Equilibrium ◽  
Ex Post ◽  
Good Market ◽  
Asymptotically Efficient ◽  
Homogeneous Good

The price mechanism is fundamental to economics but difficult to reconcile with incentive compatibility and individual rationality. We introduce a double clock auction for a homogeneous good market with multidimensional private information and multiunit traders that is deficit‐free, ex post individually rational, constrained efficient, and makes sincere bidding a dominant strategy equilibrium. Under a weak dependence and an identifiability condition, our double clock auction is also asymptotically efficient. Asymptotic efficiency is achieved by estimating demand and supply using information from the bids of traders that have dropped out and following a tâtonnement process that adjusts the clock prices based on the estimates.

Epsilon-Efficiency in a Dynamic Partnership with Adverse Selection and Moral Hazard

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Vi Cao
Keyword(s):  
Moral Hazard ◽  
Adverse Selection ◽  
Incentive Compatibility ◽  
Current Effort ◽  
Bayesian Equilibrium ◽  
Ex Post ◽  
Wide Range ◽  
Division Rule ◽  
Dynamic Partnership ◽  
Division Mechanism

Abstract For a dynamic partnership with adverse selection and moral hazard, we design a direct profit division mechanism that satisfies ϵ-efficiency, periodic Bayesian incentive compatibility, interim individual rationality, and ex-post budget balance. In addition, we design a voting mechanism that implements the profit division rule associated with this direct mechanism in perfect Bayesian equilibrium. For establishing these possibility results, we assume that the partnership exhibits intertemporal complementarities instead of contemporaneous complementarities; equivalently, an agent’s current effort affects other agents’ future optimal efforts instead of current optimal efforts. This modelling assumption fits a wide range of economic settings.

Strategic Transmission of Correlated Information

2020 ◽  
Vol 130 (631) ◽  
pp. 2175-2206
Author(s):  
Sergio Currarini ◽  
Giovanni Ursino ◽  
A K S Chand
Keyword(s):  
Private Information ◽  
Selective Exposure ◽  
The Political ◽  
Political Discussion ◽  
Truth Telling ◽  
Trade Off ◽  
Uniform State ◽  
The World ◽  
Correlated Information ◽  
Multiple Experts

Abstract We consider a situation in which a decision-maker gathers information from imperfectly informed experts, receiving coarse signals about a uniform state of the world. Private information is (conditionally) correlated across players, and communication is cheap talk. We show that with two experts correlation unambiguously tightens the conditions on preferences for a truth-telling equilibrium. However, with multiple experts the effect of correlation on the incentives to report information truthfully can be non-monotonic: while little and large levels of correlation hinder truth-telling, intermediate levels may discipline experts’ equilibrium behaviour and foster truthful communication. We discuss the implications of our results for the political discussion in the presence of ‘selective exposure' to media, where similarity in preferences comes with higher correlation, and a trade-off between truth-telling incentives and informational content arises.

scholarly journals Ex-post implementation with social preferences

2020 ◽  
Author(s):  
Boaz Zik
Keyword(s):  
Mechanism Design ◽  
Current Literature ◽  
Private Information ◽  
Social Preference ◽  
Social Preferences ◽  
Incentive Compatibility ◽  
Higher Order ◽  
The Other ◽  
Ex Post ◽  
Ex Post Implementation

Abstract The current literature on mechanism design in models with social preferences discusses social-preference-robust mechanisms, i.e., mechanisms that are implementable in any environment with social preferences. The literature also discusses payoff-information-robust mechanisms, i.e., mechanisms that are implementable for any belief and higher-order beliefs of the agents about the payoff types of the other agents. In the present paper, I address the question of whether deterministic mechanisms that are robust in both of these dimensions exist. I consider environments where each agent holds private information about his personal payoff and about the existence and extent of his social preferences. In such environments, a mechanism is robust in both dimensions only if it is ex-post implementable, i.e., only if incentive compatibility holds for every realization of payoff signals and for every realization of social preferences. I show that ex-post implementation of deterministic mechanisms is impossible in such environments; i.e., deterministic mechanisms that are both social-preference-robust and payoff-information-robust do not exist.

scholarly journals Diagnostic Capabilities of a Smartphone- Based Low-Cost Microscope

2020 ◽  
Vol 6 (3) ◽  
pp. 522-525
Author(s):  
Dorina Hasselbeck ◽  
Max B. Schäfer ◽  
Kent W. Stewart ◽  
Peter P. Pott
Keyword(s):  
Low Cost ◽  
Field Of View ◽  
Parasitic Diseases ◽  
Optical Parameters ◽  
Trade Off ◽  
Resource Limited ◽  
Wide Range ◽  
Diagnostic Applications ◽  
Diagnostic Capabilities

AbstractMicroscopy enables fast and effective diagnostics. However, in resource-limited regions microscopy is not accessible to everyone. Smartphone-based low-cost microscopes could be a powerful tool for diagnostic and educational purposes. In this paper, the imaging quality of a smartphone-based microscope with four different optical parameters is presented and a systematic overview of the resulting diagnostic applications is given. With the chosen configuration, aiming for a reasonable trade-off, an average resolution of 1.23 μm and a field of view of 1.12 mm2 was achieved. This enables a wide range of diagnostic applications such as the diagnosis of Malaria and other parasitic diseases.

scholarly journals Evaluating the efficacy of technical measures: a case study of selection device legislation in the UK Crangon crangon (brown shrimp) fishery

2008 ◽  
Vol 65 (2) ◽  
pp. 267-275 ◽  
Author(s):  
Tom L. Catchpole ◽  
Andrew S. Revill ◽  
James Innes ◽  
Sean Pascoe
Keyword(s):  
Brown Shrimp ◽  
Crangon Crangon ◽  
Shrimp Fishery ◽  
The North ◽  
Ex Post ◽  
Wide Range ◽  
The Uk ◽  
The Impact ◽  
Technical Measures

Abstract Catchpole, T. L., Revill, A. S., Innes, J., and Pascoe, S. 2008. Evaluating the efficacy of technical measures: a case study of selection device legislation in the UK Crangon crangon (brown shrimp) fishery. – ICES Journal of Marine Science, 65: 267–275. Bycatch reduction devices are being introduced into a wide range of fisheries, with shrimp and prawn fisheries particularly targeted owing to the heavy discarding common in these fisheries. Although studies are often undertaken to estimate the impact of a technical measure on the fishery before implementation, rarely have the impacts been assessed ex post. Here, the efficacy of the UK legislation pertaining to the use of sievenets in the North Sea Crangon crangon fishery is assessed. Three impacts were evaluated: on fisher behaviour (social), on the level of bycatch (biological), and on vessel profitability (economic). An apparent high level of compliance by skippers was identified despite a low level of enforcement. The estimated reduction in fleet productivity following the introduction of the legislation was 14%, equalling the mean loss of Crangon landings when using sievenets calculated from catch comparison trawls. Sievenets did reduce the unnecessary capture of unwanted marine organisms, but were least effective at reducing 0-group plaice, which make up the largest component of the bycatch. Clearly the legislation has had an effect in the desired direction, but it does not address sufficiently the bycatch issue in the Crangon fishery.

scholarly journals Introduction to redundancy rules: the continuous wavelet transform comes of age

2018 ◽  
Vol 376 (2126) ◽  
pp. 20170258 ◽  
Author(s):  
Paul S. Addison
Keyword(s):  
Wavelet Transform ◽  
Continuous Wavelet Transform ◽  
State Of The Art ◽  
Structural Characteristics ◽  
Continuous Wavelet ◽  
Theme Issue ◽  
Current State ◽  
Analysis Methods ◽  
Wide Range ◽  
New Form

Redundancy: it is a word heavy with connotations of lacking usefulness. I often hear that the rationale for not using the continuous wavelet transform (CWT)—even when it appears most appropriate for the problem at hand—is that it is ‘redundant’. Sometimes the conversation ends there, as if self-explanatory. However, in the context of the CWT, ‘redundant’ is not a pejorative term, it simply refers to a less compact form used to represent the information within the signal. The benefit of this new form—the CWT—is that it allows for intricate structural characteristics of the signal information to be made manifest within the transform space, where it can be more amenable to study: resolution over redundancy. Once the signal information is in CWT form, a range of powerful analysis methods can then be employed for its extraction, interpretation and/or manipulation. This theme issue is intended to provide the reader with an overview of the current state of the art of CWT analysis methods from across a wide range of numerate disciplines, including fluid dynamics, structural mechanics, geophysics, medicine, astronomy and finance. This article is part of the theme issue ‘Redundancy rules: the continuous wavelet transform comes of age’.

scholarly journals Robust estimation of vertical symmetry axis models via joint migration inversion: Including multiples in anisotropic parameter estimation

Geophysics ◽  
2019 ◽  
Vol 84 (1) ◽  
pp. C57-C74 ◽  
Author(s):  
Abdulrahman A. Alshuhail ◽  
Dirk J. Verschuur
Keyword(s):  
Symmetry Axis ◽  
Transverse Isotropy ◽  
Half Cycle ◽  
Anisotropic Parameter ◽  
Data Set ◽  
Trade Off ◽  
Trade Offs ◽  
Highly Nonlinear ◽  
Wide Range ◽  
Internal Multiples

Because the earth is predominately anisotropic, the anisotropy of the medium needs to be included in seismic imaging to avoid mispositioning of reflectors and unfocused images. Deriving accurate anisotropic velocities from the seismic reflection measurements is a highly nonlinear and ambiguous process. To mitigate the nonlinearity and trade-offs between parameters, we have included anisotropy in the so-called joint migration inversion (JMI) method, in which we limit ourselves to the case of transverse isotropy with a vertical symmetry axis. The JMI method is based on strictly separating the scattering effects in the data from the propagation effects. The scattering information is encoded in the reflectivity operators, whereas the phase information is encoded in the propagation operators. This strict separation enables the method to be more robust, in that it can appropriately handle a wide range of starting models, even when the differences in traveltimes are more than a half cycle away. The method also uses internal multiples in estimating reflectivities and anisotropic velocities. Including internal multiples in inversion not only reduces the crosstalk in the final image, but it can also reduce the trade-off between the anisotropic parameters because internal multiples usually have more of an imprint of the subsurface parameters compared with primaries. The inverse problem is parameterized in terms of a reflectivity, vertical velocity, horizontal velocity, and a fixed [Formula: see text] value. The method is demonstrated on several synthetic models and a marine data set from the North Sea. Our results indicate that using JMI for anisotropic inversion makes the inversion robust in terms of using highly erroneous initial models. Moreover, internal multiples can contain valuable information on the subsurface parameters, which can help to reduce the trade-off between anisotropic parameters in inversion.

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