infonet-economy

We extend the equivalence between Bayesian and dominant strategy implementation established by Gershkov et al. (Econometrica, 2013) to environments with non-linear utilities satisfying the average single-crossing property and the convex-valued assumption. The new equivalence result produces novel implications to the literature on the principal-agent problem with allocative…

I show that accounting for cross-industry variation in trade elasticities greatly magnifies the estimated gains from trade. The main idea is as simple as it is general: while imports in the average industry do not matter too much, imports in some industries are critical to the functioning of the economy, so that a complete shutdown of international trade is very costly overall.

This paper documents how saving constraints can spill over into other markets. When producers value saving devices, trustworthy buyers can offer them infrequent payments—a commitment tool—and purchase at a lower price. This affects the nature of competition in the output market. We present a model of this interlinked saving-output market for the case of the Kenyan dairy industry.…

This paper examines potential impacts of banks' leverage on their incentives to manage their liquidity. We analyze a model where banks control their liquidity risk by managing their liquid asset positions. In the basic framework, a model with a single bank, where the possibility of selling long-term assets when in need of liquidity is not taken into account, we find that the…

This paper provides an overview of the Retrieving Diverse Social Images task that is organized as part of the Medi- aEval 2014 Benchmarking Initiative for Multimedia Evalua- tion. The task addresses the problem of result diversification in the context of social photo retrieval. We present the task challenges, the proposed data set and ground truth, the re- quired participant runs and…

Since organizational scholars argue that re source scarcity accentuates dualities’ oppositional and relational nature, we need to know more about whether and how resource - scarce firms can manage paradox . Based on a longitudinal study of 107 Central European turnaround initiatives, we find empirical evidence that even resource - scarce organizations can successfully…

When risk mitigation fails, a company is often faced with one or more crisis events. Crisis can take many forms. A type of crisis, a smoldering crisis, can continue gaining momentum over time, slowly eroding the future success of an organization. This paper uses archival case analysis to look at how two airlines — Southwest Airlines and US Airways — responded to the smoldering…

This paper examines the ratings of 12 influential wine critics on the Bordeaux en primeur market over the vintages 2003 – 2012. We hypothesize that wine experts differ significantly in their rating approach and in fl uence on prices. We fi nd that European critics are less transparent and in general more severe in their scoring than their American counterparts. Experts also appear to…

C o mo se difunden las innovaciones en gestión de recursos humanos (GRH) entre empresas es un tema de gran interés y actualidad; al que , sin embargo, la literatura académica ha prestado relativamente poca atención. El presente artículo utiliza metodología de redes sociales para analizar empíricamente el posible impacto positivo de la participación en…