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Jean-Pierre Amigues, Alain Ayong Le Kama et Michel Moreaux
n° 13-440, octobre 2013, révision mars 2015
We study the transition between non renewable and renewable energy sources with adjustment costs over the production capacity of renewable energy. Assuming constant variable marginal costs for both energy sources, convex adjustment costs and a more expensive renewable energy, we show the following...
Christophe Courbage, Béatrice Rey et Nicolas Treich
n° 13-445, octobre 2013
This chapter surveys the economic literature on prevention and precaution. Prevention refers as either a self-protection activity – i.e. a reduction in the probability of a loss – or a self-insurance activity – i.e. a reduction of the loss –. Precaution is defined as a prudent and temporary...
Bruno Biais, Jean-Charles Rochet et Paul Woolley
n° 13-448, octobre 2013
We study the dynamics of an innovative industry when agents learn about the likelihood of negative shocks. Managers can exert risk-prevention effort to mitigate the consequences of shocks. If no shock occurs, confidence improves, attracting managers to the innovative sector. But, when condence...
Bob Evans et Soenje Reiche
octobre 2013
We analyze a cheap talk model with three possible decisions and two experts, one biased and one unbiased. Sequential public communication is always optimal for the decision maker. The optimal ordering of speaking depends on the conflict indices of the two experts, where the conflict index of an...
Glenn Ellison et Sara Fisher Ellison
The Internet is a nearly perfect market because information is instantaneous and buyers can compare the offerings of sellers worldwide. The result is fierce price competition, dwindling product differentiation, and vanishing brand loyalty. Robert Kuttner, Business Week, May 11, 1998. The explosive...
Susan Athey et Scott Stern
This paper evaluates the nature, relative incidence and drivers of software piracy. In contrast to prior studies, we analyze data that allows us to measure piracy for a specific product – Windows 7 – which was associated with a significant level of private sector investment. Using anonymized...
Bruno Jullien, Patrick Rey et Claudia Saavedra
collection « Rapport IDEI », n° 23, octobre 2013, révision mars 2014
The paper discusses economic theories of harm for anti-competitive margin squeeze by unregulated and regulated vertically integrated firms. We review both predation and foreclosure theories, as well as the mere exploitation of upstream market power. We show that foreclosure provides an appropriate...
Patrick Fève, Julien Matheron et Jean-Guillaume Sahuc
vol. 5, n° 4, octobre 2013, p. 141–178
This paper examines issues related to the estimation of the government spending multiplier (GSM) in a DSGE context. We stress a source of bias in the GSM arising from the combination of endogenous government expenditures and Edgeworth complementarity between private consumption and government...
André Blais, Jean-François Laslier, Nicolas Sauger et Karine Van Der Straeten
vol. 43, n° 4, octobre 2013, p. 937–944
Philippe Gagnepain, Marc Ivaldi et David Martimort
vol. 103, n° 6, octobre 2013, p. 2352–2383
Contract theory claims that renegotiation prevents attainment of the efficient solution that could be obtained under full commitment. Assessing the cost of renegotiation remains an open issue from an empirical viewpoint. We fit a structural principal-agent model with renegotiation on a set of...
