Imperfect Competition and International Trade

Author: Gene M. Grossman

Publisher: MIT Press

ISBN: 9780262570930

Category: Business & Economics

Page: 387

View: 6140


This book collects 19 of the most influential articles on trade with imperfect competition, providing ready access to current research by top-level economists.

Imperfect Knowledge Economics

Exchange Rates and Risk

Author: Roman Frydman,Michael D. Goldberg

Publisher: Princeton University Press

ISBN: 9780691121604

Category: Business & Economics

Page: 340

View: 5133


Posing a major challenge to economic orthodoxy, Imperfect Knowledge Economics asserts that exact models of purposeful human behavior are beyond the reach of economic analysis. Roman Frydman and Michael Goldberg argue that the longstanding empirical failures of conventional economic models stem from their futile efforts to make exact predictions about the consequences of rational, self-interested behavior. Such predictions, based on mechanistic models of human behavior, disregard the importance of individual creativity and unforeseeable sociopolitical change. Scientific though these explanations may appear, they usually fail to predict how markets behave. And, the authors contend, recent behavioral models of the market are no less mechanistic than their conventional counterparts: they aim to generate exact predictions of "irrational" human behavior. Frydman and Goldberg offer a long-overdue response to the shortcomings of conventional economic models. Drawing attention to the inherent limits of economists' knowledge, they introduce a new approach to economic analysis: Imperfect Knowledge Economics (IKE). IKE rejects exact quantitative predictions of individual decisions and market outcomes in favor of mathematical models that generate only qualitative predictions of economic change. Using the foreign exchange market as a testing ground for IKE, this book sheds new light on exchange-rate and risk-premium movements, which have confounded conventional models for decades. Offering a fresh way to think about markets and representing a potential turning point in economics, Imperfect Knowledge Economics will be essential reading for economists, policymakers, and professional investors.

Imperfect Unions

Security Institutions Over Time and Space

Author: Helga Haftendorn,Robert Keohane,Celeste Wallender

Publisher: OUP Oxford

ISBN: 0191583391

Category: Political Science

Page: 394

View: 3115


International institutions play important roles in political-military issues as well as in economic and environmental affairs. Indeed, it is impossible to understand efforts to resolve regional and local conflicts, or the form and pace of alliance formation and expansion, without paying attention to security institutions. Imperfect Unions discusses a wide variety of security institutions, including NATO, the Western European Union, United Nations peacekeeping, the ASEAB Regional Forum, and the Organisation for Security and Co-operation in Europe. It describes changes in security institutions, documents the effects of such institutions on national policies, and explores the conditions that affect the patterns of co-operation and discord that ensue. The book helps to improve our understanding of recent developments in international relations such as NATO enlargement and the regionalization of peacekeeping. In theoretical terms, it shows how institutionalist approaches, such as those represented in this volume, can enrich the important field of security studies.

Imperfect Competition, Differential Information, and Microfoundations of Macroeconomics

Author: Kiyohiko G. Nishimura

Publisher: Oxford University Press

ISBN: 9780198290391

Category: Business & Economics

Page: 231

View: 9009


This theoretical work links a microeconomic model of imperfectly informed firms and unions in monopolistic competition to a general theory of wage and price setting in a macroeconomic model. The analysis is based on profit maximization and rational behavio

Imperfect Insurance Markets

An Economic Analysis of Externalities and Consumer Diversity

Author: Annette Hofmann

Publisher: VVW GmbH

ISBN: 9783862981137

Category: Business & Economics

Page: 198

View: 1754


The focus of this thesis is on consumer diversity. Incorporating consumer heterogeneity into economic analysis is well-established in industrial organization literature; this aspect is, however, often neglected in microeconomic insurance models. A first new approach lies in analyzing risk interdependencies. When risks are interdependent, an agent's decision to self-protect affects the loss probabilities faced by others. Due to these externalities, economic agents invest too little in prevention relative to the socially efficient level by ignoring marginal external costs or benefits conferred on others. We analyze an insurance market with externalities of loss prevention. It is shown in a model with heterogenous agents and imperfect information that a monopolistic insurer can achieve the social optimum by engaging in premium discrimination. An insurance monopoly reduces not only costs of risk selection, but may also play an important social role in loss prevention. This result can be empirically confirmed. We also deal with the impact of intermediation on insurance market transparency and performance. In a differentiated insurance market under imperfect information, uninformed consumers may become informed about product suitability by consulting an intermediary. We analyze current broker compensation systems: commissions and fees. While insurers' equilibrium profits are equivalent under both systems, social welfare under fees is first-best efficient. Both systems may offer the opportunity to increase profits via collusion. Under a commission system, collusion enables insurers to separate consumers into groups purchasing different contracts. Insurers may then extract additional rents from some consumers. This might explain why intermediaries tend to be compensated by insurers in practice. Finally, we study optimal monopoly pricing given imperfect information and heterogenous policyholders. Die in englischer Sprache verfasste Arbeit ist der mikroökonomischen Analyse von Versicherungsmärkten gewidmet. Zunächst werden einige wichtige theoretische Grundlagen der Versicherungsnachfragetheorie beschrieben. Eine zentrale Erweiterung des Basismodells stellen interdependente Risiken dar. Bestehen Risikointerdependenzen, so sind alle Maßnahmen, die die Schadenshäufigkeit reduzieren, mit positiven externen Effekten verbunden. Es wird gezeigt, dass im Gleichgewicht das realisierte Präventionsniveau unterhalb des optimalen Niveaus angesiedelt ist. Aufgrund der Externalitäten kommt es zu einem Marktversagen und nur ein Monopolversicherer kann eine differenzierte Prämienstruktur herbeiführen, die zum optimalen Präventionsniveau führt. Dieses Ergebnis kollidiert mit dem Ergebnis, dass wettbewerbliche Versicherungsmärkte zu einer höheren Gesamtwohlfahrt führen, es lässt sich jedoch empirisch stützen. Ein weiterer Schwerpunkt der Arbeit liegt auf unvollkommenen Versicherungsmärkten, wobei heterogene Versicherungsnachfrager mit unterschiedlichen Produktpräferenzen und Informationskosten unterstellt werden. In einem solchen Markt erhöhen Versicherungsvermittler die Markttransparenz und damit auch die Gewinne der Versicherer. Im Mittelpunkt steht die Analyse verschiedener Vergütungsformen der Vermittler. Ein Vergütungssystem auf Basis von Beratungshonoraren ist einem Provisionssystem aus wohlfahrtsökonomischer Perspektive vorzuziehen. Aus Sicht der Versicherer kehrt sich dieses Ergebnis allerdings um, sobald es zur Kollusion zwischen Versicherern und Vermittlern kommt. Der letzte Schwerpunkt liegt in der Analyse einer optimalen Preispolitik eines Versicherungsmonopolisten bei heterogenen Nachfragern, die sich durch ihre Risikopräferenzen und damit ihre individuelle Zahlungsbereitschaft für Versicherungen unterscheiden.

Imperfect Paradise

Shen Congwen

Author: Congwen Shen,Jeffrey C. Kinkley

Publisher: University of Hawaii Press

ISBN: 9780824817152

Category: Fiction

Page: 537

View: 4534


This book provides the most comprehensive and authoritative representation in English of the remarkable Shen Congwen canon, ranging from the polished stories that made him a serious contender for the Nobel literary prize in the 1980s to lesser known, extravagant experimental pieces.

The Economics of Imperfect Competition

A Spatial Approach

Author: Melvin L. Greenhut,George Norman,Chao-Shun Hung

Publisher: Cambridge University Press

ISBN: 9780521315647

Category: Business & Economics

Page: 408

View: 2500


This new approach to traditional price theory and to the analysis of imperfect competition represents a breakthrough in the development of a "new" microeconomic theory. Addresses issues in price theory, industrial organization, international trade and regional urban economics.

Imperfect competition in international trade

Author: Winston Chang,Seiichi Katayama

Publisher: Springer Science & Business Media

ISBN: 9780792395461

Category: Business & Economics

Page: 271

View: 7401


Imperfect Competition in International Trade provides a theoretical analysis of international trade and industrial policy by developing and using new models of trade with imperfect competition. Modeling of imperfect competition within international trade has been difficult until recent breakthroughs in this area, which have provided a more realistic view of the world economy. This book builds on these advances provided by such tools as game theory and the theory of monopolistic competition.

Economics for an Imperfect World

Essays in Honor of Joseph E. Stiglitz

Author: Joseph E. Stiglitz

Publisher: MIT Press

ISBN: 9780262012058

Category: Business & Economics

Page: 702

View: 6595


The focus of Joseph Stiglitz's work in economics throughout his long and distinguished career has been on the real world, with all of its imperfections.