Articles

Ambiguity and the Bayesian Approach

I. GILBOA, M. MARINACCI

Advances in Economics and Econometrics: Theory and Applications

Forthcoming

Departments: Economics & Decision Sciences, GREGHEC (CNRS)


Belief-free price formation

S. LOVO, T. TOMALA, J. HÖRNER

Journal of Financial Economics

Forthcoming

Departments: Finance, GREGHEC (CNRS), Economics & Decision Sciences


More haste less speed? Signaling through investment timing

R. LEVY, C. BOBTCHEFF

American Economic Journal: Microeconomics

Forthcoming

Departments: Economics & Decision Sciences, GREGHEC (CNRS)

https://www.aeaweb.org/articles?id=10.1257/mic.20160200


We consider a cash-constrained firm learning on the value of an irreversible project at a privately-known speed. Under perfect information, the optimal date of investment may be non-monotonic in the learning speed: better learning increases the value of experimenting further, but also the speed of updating. Under asymmetric information, the firm uses its investment timing to signal confidence in the project and raise cheaper capital from uninformed investors, which may generate timing distortions: investment is hurried when learning is sufficiently fast, and delayed otherwise. The severity of the cash constraint affects the magnitude of the distortion, but not its direction

Repeated games with public deterministic monitoring

T. TOMALA, Marie LACLAU

Journal of Economic Theory

Forthcoming

Departments: Economics & Decision Sciences, GREGHEC (CNRS)


Risk-Based Capital Requirements for Banks and International Trade

Banu DEMIR-PAKEL, T. K. MICHALSKI, E. ORS

Review of Financial Studies

Forthcoming

Departments: Economics & Decision Sciences, GREGHEC (CNRS), Finance



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