scholarly journals Asymmetric Information and Intermediation Chains

2016 ◽  
Vol 106 (9) ◽  
pp. 2699-2721 ◽  
Author(s):  
Vincent Glode ◽  
Christian Opp
Keyword(s):  
Asymmetric Information ◽  
Market Power ◽  
Bilateral Trade ◽  
Trade Volume ◽  
Classic Problem ◽  
Information Set ◽  
Decentralized Markets ◽  
Parsimonious Model ◽  
Model Features ◽  
Shed Light

We propose a parsimonious model of bilateral trade under asymmetric information to shed light on the prevalence of intermediation chains that stand between buyers and sellers in many decentralized markets. Our model features a classic problem in economics where an agent uses his market power to inefficiently screen a privately informed counterparty. Paradoxically, involving moderately informed intermediaries also endowed with market power can improve trade efficiency. Long intermediation chains in which each trader's information set is similar to those of his direct counterparties limit traders' incentives to post prices that reduce trade volume and jeopardize gains to trade. (JEL D42, D82, D85, L12, L14)

scholarly journals Volume, intensity and intra-industrial proportion of bilateral trade between Mexico and the United States 1981-2017

Norteamérica ◽  
1969 ◽  
Vol 15 (1) ◽  
Author(s):  
Dulce Albarrán Macías
Keyword(s):  
United States ◽  
Economic Integration ◽  
Vertical Integration ◽  
Growth Rates ◽  
World Trade ◽  
Bilateral Trade ◽  
The United States ◽  
Trade Intensity ◽  
Trade Volume ◽  
Production Processes

The aim of this paper is to characterize the bilateral trade between Mexico and the United States during the period 1981-2017, highlighting the effects of Mexico's accession to the GATT and the entry into force of NAFTA, as well as the entry of China into the WTO. Although there have been decelerations at some point, results show an increase in trade volume and, consequently, in the intensity of bilateral trade, but in the latter case with some falls resulting from the different growth rates of world trade. Intra-industrial trade, meanwhile, recorded sustained growth, which could reflect a greater vertical integration of production processes. Keywords: trade volume, trade intensity, intra-industrial trade, Grubel and Lloyd index added and corrected, economic integration.

scholarly journals Why many Batesian mimics are inaccurate: evidence from hoverfly colour patterns

2016 ◽  
Vol 283 (1842) ◽  
pp. 20161585 ◽  
Author(s):  
Christopher H. Taylor ◽  
Tom Reader ◽  
Francis Gilbert
Keyword(s):  
Natural Selection ◽  
Multiple Model ◽  
Wild Populations ◽  
Model Species ◽  
Trade Off ◽  
Binary Images ◽  
Classic Problem ◽  
Pattern Similarity ◽  
Colour Patterns ◽  
Shed Light

Mimicry is considered a classic example of the elaborate adaptations that natural selection can produce, yet often similarity between Batesian (harmless) mimics and their unpalatable models is far from perfect. Variation in mimetic accuracy is a puzzle, as natural selection should favour mimics that are hardest to distinguish from their models. Numerous hypotheses exist to explain the persistence of inaccurate mimics, but most have rarely or never been tested against empirical observations from wild populations. One reason for this is the difficulty in measuring pattern similarity, a key aspect of mimicry. Here, we use a recently developed method, based on the distance transform of binary images, to quantify pattern similarity both within and among species for a group of hoverflies and their hymenopteran models. This allowed us to test three key hypotheses regarding inaccurate mimicry. Firstly, we tested the prediction that selection should be more relaxed in less accurate mimics, but found that levels of phenotypic variation are similar across most hoverfly species. Secondly, we found no evidence that mimics have to compromise between accuracy to multiple model species. However, we did find that darker-coloured hoverflies are less accurate mimics, which could lead to a trade-off between mimicry and thermoregulation in temperate regions. Our results shed light on a classic problem concerning the limitations of natural selection.

Asymmetric Information, Market Power, and the Underpricing of New Stock Issues in Germany, 1882–1892

2010 ◽  
Vol 70 (3) ◽  
pp. 630-656 ◽  
Author(s):  
Caroline Fohlin
Keyword(s):  
Asymmetric Information ◽  
Market Power ◽  
Market Share ◽  
Agency Problems ◽  
Information Market ◽  
Nonfinancial Firms

Investors in new stock issues in Germany in the 1880s experienced low spreads between the price they paid for stock and the price at which they could sell the stock in the market. Stock issuing companies paid substantial fees to underwriting banks, and these costs increased with the underwriter's market share. Bank's faced lower issuing costs than did nonfinancial firms. These patterns are consistent with a situation in which underwriters exploited their access to better information (agency problems) and had market power, but do not support the supposed lemons problems that motivated the imposition of stringent regulations in 1896.

scholarly journals THE STATUS AND CHALLENGES OF SINO-RUSSIAN FAR EAST COOPERATION

ASJ. ◽  
2020 ◽  
Vol 2 (43) ◽  
pp. 12-15
Author(s):  
W. Ying
Keyword(s):  
Bilateral Trade ◽  
Russian Far East ◽  
National Level ◽  
Far East ◽  
Business Environment ◽  
Trade Volume ◽  
Protection Mechanism ◽  
Energy Trade ◽  
The Status ◽  
The Russian Far East

The legal basis for Sino-Russian cooperation in the Russian Far East is gradually being improved. The transition from the national level to the regional level has made cooperation more targeted. The main areas of cooperation between China and Russia in the Far East are mineral resource development, forests, energy, trade, and transportation. In 2018, the bilateral trade volume reached 107.06 billion U.S. dollars, of which the trade volume between Russia and Northeast China exceeded 23.5 billion U.S. dollars, accounting for 21% of ChinaRussia bilateral trade, an increase of 4% compared with 2017. The main challenges facing both China and Russia are the need to improve the business environment in Russia, the need to improve the protection mechanism of foreign investors’ rights and interests in Russia, and the need to change the alertness of Russia. The challenge for China is that there is a large gap in investment strength with Russia. Before cooperation The local laws of Russia should be studied carefully, and the state should gradually improve the protection mechanism for investors.

scholarly journals Demand Model of China’s Outbound Tourist

2019 ◽  
Vol 3 (2) ◽  
pp. 99
Author(s):  
Yunita Ismail Masjud
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Significant Influence ◽  
Bilateral Trade ◽  
Multiple Regression Model ◽  
Tourism Demand ◽  
Trade Volume ◽  
Demand Model ◽  
Statistical Yearbook ◽  
The Impact

This research objective was to find out the impact of resident income, tourism prices, exchange rate, and bilateral trade in goods towards China's outbound tourism trips. This research used the data from research that done by Yi (2018) and used the China Statistical Yearbook to obtained bilateral trade volume and total number of domestic trips from 2006-2015. Panel data in multiple regression model was used to analyzed the outbound tourism demand in China. The results showed that all variables had significant influence partially towards China’s outbound tourist trips, except travel price. Simultaneously all variables had significant influence towards China's outbound tourist trips.

Prices Return

2019 ◽  
pp. 195-217
Author(s):  
Philip T. Hoffman ◽  
Gilles Postel-Vinay ◽  
Jean-Laurent Rosenthal
Keyword(s):  
Interest Rate ◽  
Asymmetric Information ◽  
Price Competition ◽  
Credit Rationing ◽  
Late Nineteenth Century ◽  
Price Equilibrium ◽  
Economics Literature ◽  
Late Nineteenth ◽  
Pooling Equilibria ◽  
Shed Light

This chapter considers the transition to a new equilibrium in 1899 by reviewing some economics literature that deals with three different issues that arise in the transition from a single-price equilibrium to a range of prices. The first suggests that when there is substantial asymmetric information, price competition in credit markets may be reduced, if not eliminated, in favor of credit rationing. Next, the chapter studies why the equilibrium in a credit rationing market may feature a single interest rate. Finally, it examines a third approach that analyzes conditions under which such pooling equilibria may unravel. This economics literature helps shed light on the transition from the near universal five-percent interest rate equilibrium to a regime with a distribution of rates in the late nineteenth century.

Sectoral Trade Globalization

2021 ◽  
pp. 1-27
Author(s):  
Nuno Crespo ◽  
Nicole Palan ◽  
Nadia Simoes
Keyword(s):  
Bilateral Trade ◽  
High Tech ◽  
Trade Networks ◽  
Accurate Evaluation ◽  
Regional Production ◽  
Trade Relationships ◽  
Shed Light ◽  
Over Time

This chapter aims to shed light on the trends of sectoral trade globalization. This component of trade globalization is often neglected. An accurate evaluation of sectoral trade requires the analysis of the interdependencies of countries and the consideration of distance as a central dimension of trade globalization. As such, sectoral trade globalization is one aspect of a more complex and multi-dimensional phenomenon. Data show that sectoral trade globalization has increased significantly over the last 50 years irrespective of the characteristics of individual sectors. One relevant insight is that the level of trade globalization is on average still different for high-tech sectors compared to low-tech and medium-low-tech sectors even though the former could increase their bilateral trade relationships over time. Even though protectionist tendencies as well as the COVID-19 pandemic have led to a vivid discussion about the return to more local or regional production schemes, digitalization processes could still have the potential to further integrate countries' trade networks.

scholarly journals Asymmetric Information and Imperfect Competition in Lending Markets

2018 ◽  
Vol 108 (7) ◽  
pp. 1659-1701 ◽  
Author(s):  
Gregory S. Crawford ◽  
Nicola Pavanini ◽  
Fabiano Schivardi
Keyword(s):  
Asymmetric Information ◽  
Market Power ◽  
Adverse Selection ◽  
Imperfect Competition ◽  
Structural Model ◽  
Negative Effects ◽  
Credit Supply ◽  
Lines Of Credit ◽  
Credit Demand ◽  
Firm Default

We study the effects of asymmetric information and imperfect competition in the market for small business lines of credit. We estimate a structural model of credit demand, loan use, pricing, and firm default using matched firm-bank data from Italy. We find evidence of adverse selection in the form of a positive correlation between the unobserved determinants of demand for credit and default. Our counterfactual experiments show that while increases in adverse selection increase prices and defaults on average, reducing credit supply, banks’ market power can mitigate these negative effects. (JEL D22, D82, G21, G32, L13, L25)

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