scholarly journals Ex-post IR Dynamic Auctions with Cost-per-Action Payments

2018 ◽  
Author(s):  
Weiran Shen ◽  
Zihe Wang ◽  
Song Zuo
Keyword(s):  
Common Knowledge ◽  
Incentive Compatibility ◽  
Individual Rationality ◽  
Incentive Compatible ◽  
Dynamic Auctions ◽  
Ex Post ◽  
Ex Ante ◽  
Ad Auctions ◽  
The Cost ◽  
General Reduction

Motivated by online ad auctions, we consider a repeated auction between one seller and many buyers, where each buyer only has an estimation of her value in each period until she actually receives the item in that period. The seller is allowed to conduct a dynamic auction but must guarantee ex-post individual rationality. In this paper, we use a structure that we call credit accounts to enable a general reduction from any incentive compatible and ex-ante individual rational dynamic auction to an approximate incentive compatible and ex-post individually rational dynamic auction with credit accounts. Our reduction obtains stronger individual rationality guarantees at the cost of weaker incentive compatibility. Surprisingly, our reduction works without any common knowledge assumption. Finally, as a complement to our reduction, we prove that there is no non-trivial auction that is exactly incentive compatible and ex-post individually rational under this setting.

Incentive-Compatible Matching Mechanisms: Consistency with Various Stability Notions

2013 ◽  
Vol 5 (4) ◽  
pp. 120-141 ◽  
Author(s):  
M. Bumin Yenmez
Keyword(s):  
Incentive Compatibility ◽  
Short Side ◽  
Incentive Compatible ◽  
Ex Post ◽  
Matching Market ◽  
Ex Ante ◽  
One To One ◽  
Stability Notions

I study the consistency of incentive compatibility with several stability notions for a one-to-one matching market with transfers. Ex post stability, studied in the matching literature, is too strong to be satisfied together with incentive compatibility. Therefore, I introduce weaker stability notions: ex ante stability and interim stability. Although ex ante stability is consistent with incentive compatibility when agents are ex ante identical or when the market is balanced, interim stability can only be satisfied when there is one agent on the short side of the market, as in auctions. Which stability is appropriate depends on when agents can block. (JEL C78, D44, D83)

Monopoly Regulation Under Relaxed Pareto Efficiency

2017 ◽  
Vol 5 (2) ◽  
pp. 162-176
Author(s):  
Ismail Saglam
Keyword(s):  
Marginal Cost ◽  
Regulatory Environment ◽  
Pareto Dominance ◽  
Incentive Compatible ◽  
Monopoly Regulation ◽  
Dominance Relationships ◽  
Ex Post ◽  
Ex Ante ◽  
Pareto Axiom ◽  
Set Of Points

Baron and Myerson (BM; 1982, Econometrica, 50(4), 911–930) propose an incentive-compatible, individually rational and ex ante socially optimal direct-revelation mechanism to regulate a monopolistic firm with unknown costs. Their mechanism is not ex post Pareto dominated by any other feasible direct-revelation mechanism. However, there also exist an uncountable number of feasible direct-revelation mechanisms that are not ex post Pareto dominated by the BM mechanism. To investigate whether the BM mechanism remains in the set of ex post undominated mechanisms when the Pareto axiom is slightly weakened, we introduce the ∈-Pareto dominance. This concept requires the relevant dominance relationships to hold in the support of the regulator’s beliefs everywhere except for a set of points of measure ∈, which can be arbitrarily small. We show that a modification of the BM mechanism which always equates the price to the marginal cost can ∈-Pareto dominate the BM mechanism at uncountably many regulatory environments, while it is never ∈-Pareto dominated by the BM mechanism at any regulatory environment.

Negative-Emission Technologies and Patent Rights after COVID-19

Climate Law ◽  
2020 ◽  
Vol 10 (3-4) ◽  
pp. 225-265
Author(s):  
Joshua D. Sarnoff
Keyword(s):  
Access To Medicines ◽  
Private Funding ◽  
Compulsory Licensing ◽  
Patent Pools ◽  
Ex Post ◽  
Patent Rights ◽  
Ex Ante ◽  
The Cost ◽  
National Governments ◽  
Negative Emission Technologies

Abstract Governmental and particularly private funding has recently and dramatically expanded for both beccs and dac technologies. This funding and the associated research, development, and deployment efforts will generate intellectual property rights, particularly patent rights in nets. As with access to medicines, the COVID-19 pandemic has highlighted concerns that patent rights may incentivize RD&D at the cost of affordable access to the relevant technologies. Further, access may be restricted to particular countries based on sovereignty concerns to seek preferential supply agreements through up-front funding. As a result, nations will likely turn to controversial ex-post measures, such as compulsory licensing, to assure access and to control prices of the needed technologies. The same concerns with patent rights likely will affect RD&D of nets. Although international ex-ante measures exist (such as patent pools) which would help to minimize these concerns, such measures may not induce the requisite voluntary contributions, or may fail to materialize due to political disagreements. Focusing on both US law and international developments, this article proposes various ex-ante measures that can be adopted by national governments and private funders to minimize the likely forthcoming worldwide conflicts that will arise over balancing innovation incentives for, and affordable access to, patented nets.

scholarly journals Retrospective Evaluation of the Costs of Complying with Light-Duty Vehicle Surface Coating Requirements

2018 ◽  
Vol 10 (1) ◽  
pp. 39-64
Author(s):  
Ann Wolverton ◽  
Ann E. Ferris ◽  
Nathalie B. Simon
Keyword(s):  
Surface Coating ◽  
Air Pollutants ◽  
Unit Cost ◽  
Hazardous Air Pollutants ◽  
Light Duty ◽  
Ex Post ◽  
Ex Ante ◽  
Light Duty Vehicle ◽  
The Cost ◽  
The U.S

This paper compares the U.S. Environmental Protection Agency’s (EPA) ex ante compliance cost estimates for the 2004 Automobile and Light-Duty Truck Surface Coating National Emission Standards for Hazardous Air Pollutants to ex post evidence on the actual costs of compliance based on ex post cost data gathered from a subset of the industry via pilot survey and follow-up interviews. Unlike many prior retrospective studies on the cost of regulatory compliance, we use this newly gathered information to identify the key drivers of any differences between the ex ante and ex post estimates. We find that the U.S. EPA overestimated the cost of compliance for the plants in our sample and that overestimation was driven primarily by differences in the method of compliance rather than differences in the per-unit cost associated with a given compliance approach. In particular, the U.S. EPA expected facilities to install pollution abatement control technologies in their paint shops to reduce emissions of hazardous air pollutants, but instead these plants complied by reformulating coatings.

scholarly journals Evaluation of efficiency of the Common Measures – measures for land accessibility, implemented within land consolidation

2011 ◽  
Vol 57 (No. 10) ◽  
pp. 500-505 ◽  
Author(s):  
J. Papoušek
Keyword(s):  
Land Consolidation ◽  
Ecological Stability ◽  
Rural Roads ◽  
Financial Flows ◽  
Investment Projects ◽  
Ex Post ◽  
Ex Ante ◽  
General Benefit ◽  
The Common ◽  
The Cost

By the means of Land Consolidation is understood, in accord with law No. 139/2002 Coll., spending of funds on land consolidations and land offices, provided the accessibility of grounds in public interest. Land consolidations also ensure the conditions for improvement of the ecosystem, protection and reclamation of land resources, waterway management and the increase of the ecological stability of landscape. All mentioned measures are collectively called the Common Measures, rural roads being one of the most significant of these measures as far as the ground accessibility is concerned. According to the Ministry of Agriculture and the Central Land Office (MZe, ÚPÚ) statistics, for instance in 2008, over 707.4 million CZK was spent on the common measures projects from the public funds. Of this sum, 82 per cent was spent on financing of the land accessibility projects – rural roads and objects on them. The Cost & Benefit Analysis (CBA) method was applied. The analysis explains step by step what benefits the investment projects bring and to whom, as well as what and from whom it takes something away. Thus defined effects and impacts are aggregated, converted into financial flows and included in the calculation of criteria indicators. These calculations enable to make decision whether the concerned project is in its consequences generally contributive. There is a difficulty in the method – it is applied ex-ante, which usually leads to the exaggerated input parameters, which may be significantly affected by a number of variable effects (time factor, socio-economic impacts, inflation rate, etc.). The ex-post application of the method cannot be objectively used due to the absence of the statistically processed input data for the analysis. Such data must be collected during the operational period of the realized investments. This is caused by the fact that these analyses consider lifetime of these investments in terms of 25–30 years. The ÚPÚ statistics, however, say that the operational period of most of realized common measures has not reached one half of their lifetime yet. The ex-ante analysis enables to evaluate the possible difficulty and the general benefit of projects, including their impact on the broad spectrum of subjects.  

The Cost of Local Government Structural Reorganisation in Great Britain during the 1990s

10.1068/c0063 ◽  
2002 ◽  
Vol 20 (2) ◽  
pp. 251-262 ◽  
Author(s):  
Michael Chisholm
Keyword(s):  
Structural Change ◽  
Great Britain ◽  
Local Government ◽  
Costs And Benefits ◽  
Transition Costs ◽  
Ex Post ◽  
Ex Ante ◽  
The Government ◽  
The Cost ◽  
Official Data

When the structure of local government in Great Britain was reorganised during the 1990s, considerable emphasis was placed by the government on the financial savings which would accrue to offset the costs incurred in making the changes. Previous work examined these expectations and found clear evidence that the ex ante estimates of transition costs given to the Westminster parliament were serious underestimates, and that the expected savings had not, at that time, materialised. This work was done at a time when it was known that some of the official data on transition costs would not be complete until after the close of the 2000/01 financial year. The author's primary purpose is to place on record what may be regarded as the final estimates of the transition costs in England, Scotland, and Wales. In addition, comparisons between the ex ante estimates of the costs of structural change and the ex post evidence concerning actual costs are updated. The discrepancy between these is such as to confirm the need for some form of independent scrutiny of new legislation at the time when it is being considered in parliament, to ensure that decisions are taken in the light of realistic assessments of the costs and benefits of proposed enactments.

Information and the Cost of Capital: An Ex Ante Perspective

2010 ◽  
Vol 85 (3) ◽  
pp. 817-848 ◽  
Author(s):  
Peter O. Christensen ◽  
Leonidas E. de la Rosa ◽  
Gerald A. Feltham
Keyword(s):  
Rational Expectations ◽  
Cost Of Capital ◽  
Public Disclosure ◽  
Full Time ◽  
Recent Discussion ◽  
Equilibrium Prices ◽  
Ex Post ◽  
Ex Ante ◽  
The Cost ◽  
The Impact

ABSTRACT: Recent articles have demonstrated that increased public disclosure can decrease firms’ cost of capital. The focus has been on the impact of information on the cost of capital subsequent to the release of the information (the ex post cost of capital). We show that the reduction in the ex post cost of capital is offset by an equal increase in the cost of capital for the period leading up to the release of the information (the preposterior cost of capital). Thus, within the class of models framing the recent discussion, there is no impact on the ex ante cost of capital covering the full time span of the firm. The extent to which information is made publicly or privately available affects the timing of the resolution of uncertainty and when the information is reflected in equilibrium prices, but there is no impact on initial equilibrium prices. Within a noisy rational expectations equilibrium, rational investors may actually benefit from a higher ex post cost of capital.

The Marriage Problem with Interdependent Preferences

2020 ◽  
Vol 22 (02) ◽  
pp. 2040005
Author(s):  
Mohsen Pourpouneh ◽  
Rasoul Ramezanian ◽  
Arunava Sen
Keyword(s):  
Private Information ◽  
Common Knowledge ◽  
Priority Rules ◽  
Marriage Problem ◽  
Interdependent Preferences ◽  
Incentive Compatible ◽  
Ex Post ◽  
Women’S Preferences ◽  
Matching Rules

This paper considers the Gale–Shapley model with interdependent preferences. Women’s preferences over men are common knowledge but whether or not a man is acceptable depends on the preferences of men which are private information. It is shown that no ex-post incentive-compatible and ex-post stable matching rules exist. A characterization of ex-post incentive-compatible, ex-post individually rational and ex-post nonbossy matching rules in terms of modified priority rules is provided.

scholarly journals A conceptual discussion on ‘path dependence’ and ‘demand for returns’ arguments: Private enterprise versus SOE performance

2014 ◽  
Vol 3 (4) ◽  
pp. 149-155
Author(s):  
Malla Praveen Bhasa
Keyword(s):  
Path Dependence ◽  
Firm Behavior ◽  
Scientific Literature ◽  
Common Knowledge ◽  
Private Enterprise ◽  
Research Literature ◽  
Private Enterprises ◽  
Ex Post ◽  
Ex Ante ◽  
Business Practitioners

Enterprise historicity has always been a precursor to how it is run in contemporary times. While it is common knowledge that enterprises brace up to the challenges of paradigmatic shifts in business, what is commonly overlooked both in research literature and by business practitioners is the subtle influence that the ex ante firm behavior exerts on any ex post decision. Some researchers have liberally drawn from scientific literature to explain this phenomenon as that of path dependence. In this paper, an attempt is made to discuss the relevance of path dependence in enterprise behavior and supplement it with the ‘demand for returns’ argument which posits that private enterprises stand to perform better as against state-owned enterprises as a result of the stakeholders’ demand for their rightful share of value.

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