dc.contributor.author | Mason, Robin | en_GB |
dc.contributor.author | Valimaki, Juuso | en_GB |
dc.date.accessioned | 2013-02-13T15:34:01Z | en_GB |
dc.date.accessioned | 2013-03-19T15:57:43Z | |
dc.date.issued | 2013-02-13 | en_GB |
dc.description.abstract | We propose a simple model of optimal stopping where the economic environment
changes as a result of learning. A primary application of our framework is the
problem of how optimally to sell an asset, when the demand for that asset is initially
uncertain. In the model that we consider, the seller learns about the arrival rate
of buyers to the market. As time passes without a sale, the seller becomes more
pessimistic about the arrival rate. When the seller does not observe the arrival of
a buyer to the market, the rate at which the seller revises her beliefs is affected by
the price she sets. We show that learning then leads to a higher posted price by the
seller. When the seller does observe the arrival of buyers, she sets an even higher
price. | en_GB |
dc.identifier.citation | forthcoming ed. | en_GB |
dc.identifier.uri | http://hdl.handle.net/10036/4295 | en_GB |
dc.language.iso | en | en_GB |
dc.publisher | Wiley-Blackwell | en_GB |
dc.relation.url | http://sites.google.com/site/masonrobin/ | en_GB |
dc.relation.url | http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1542-4774 | en_GB |
dc.subject | Principal-agent model | en_GB |
dc.subject | continuous time | en_GB |
dc.subject | moral hazard | en_GB |
dc.subject | project completion | en_GB |
dc.title | Dynamic moral hazard and stopping | en_GB |
dc.type | Article | en_GB |
dc.date.available | 2013-02-13T15:34:01Z | en_GB |
dc.date.available | 2013-03-19T15:57:43Z | |
dc.identifier.issn | 1542-4766 | en_GB |
pubs.declined | 2013-01-29T16:11:58.0+0000 | |
dc.description | Author's pre-print draft. Final version published by Wiley; available online at http://onlinelibrary.wiley.com/ | en_GB |
dc.identifier.eissn | 1542-4774 | en_GB |
dc.identifier.journal | Journal of the European Economic Association | en_GB |