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Bid, ask and transaction prices in a specialist market with heterogeneously informed traders
The presence of traders with superior information leads to a positive bid-ask spread even when the specialist is risk-neutral and makes zero expected profits. The resulting transaction prices conveyExpand
A theory of auctions and competitive bidding
Abstract : In Section 2, we review some important results of the received auction theory, introduce a new general auction model, and summarize the results of our analysis. Section 3 contains a formalExpand
Multitask Principal–Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design
In the standard economic treatment of the principal-agent problem, compensation systems serve the dual function of allocating risks and rewarding productive work. A tension between these twoExpand
The authors develop two themes in the theory of incentive schemes. First, one need not always use all of the information available in an optimal incentive contract. Accounting information, whichExpand
Good News and Bad News: Representation Theorems and Applications
This is an article about modeling methods in information economics. A notion of "favorableness" of news is introduced, characterized, and applied to four simple models. In the equilibria of theseExpand
Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities
The authors study a rich class of noncooperative games that includes models of oligopoly competition, macroeconomic coordination failures, arms races, bank runs, technology adoption and diffusion,Expand
Economics, Organization and Management
A systematic treatment of the economics of the modern firm, this book draws on the insights of a variety of areas in modern economics and other disciplines, but presents a coherent, consistent,Expand
The Limited Influence of Unemployment on the Wage Bargain
When a job-seeker and an employer meet, find a prospective surplus, and bargain over the wage, conditions in the outside labor market, including especially unemployment, may be irrelevant. TheExpand
Putting Auction Theory to Work
  • P. Milgrom
  • Economics, Computer Science
  • 12 January 2004
This book provides a comprehensive introduction to modern auction theory and its important new applications and explores the tension between the traditional theory of auctions with a fixed set of bidders and the theory of Auction with endogenous entry, in which bidder profits must be respected to encourage participation. Expand