IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2010019.html
   My bibliography  Save this paper

When frictions favour information revelation

Author

Listed:
  • ISAAC, Tanguy

    () (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

Abstract

We study information revelation in markets with pairwise meetings. First, we reconsider the one-sided case within constant entry flow model. The same question has been studied in an identical framework in Serrano and Yosha (1993). We prove that there exists an additional equilibrium not detected by Serrano and Yosha (1993). We show that this equilibrium is characterized by incomplete information revelation. Until now, no equilibrium with incomplete revelation of information was known in this model. Our second main result is that, at this new equilibrium, information revelation is worse when frictions are weaker. One prove also that increasing the frictions is a Pareto improvement. Finally, we show that those properties should also characterize some equilibria of the two-sided case studied by Wolinsky (1990).

Suggested Citation

  • ISAAC, Tanguy, 2010. "When frictions favour information revelation," CORE Discussion Papers 2010019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2010019
    as

    Download full text from publisher

    File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2010_19web.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Desai, Mihir A. & Foley, C. Fritz & Hines, James Jr., 2006. "The demand for tax haven operations," Journal of Public Economics, Elsevier, vol. 90(3), pages 513-531, February.
    2. Cremer, Helmuth & Pestieau, Pierre, 2004. "Factor mobility and redistribution," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 57, pages 2529-2560 Elsevier.
    3. Donato Masciandaro, 2005. "False and Reluctant Friends? National Money Laundering Regulation, International Compliance and Non-Cooperative Countries," European Journal of Law and Economics, Springer, vol. 20(1), pages 17-30, July.
    4. Abbott, Kenneth W. & Snidal, Duncan, 2000. "Hard and Soft Law in International Governance," International Organization, Cambridge University Press, vol. 54(03), pages 421-456, June.
    5. Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, pages 877-892.
    6. AndrewK. Rose & MarkM. Spiegel, 2007. "Offshore Financial Centres: Parasites or Symbionts?," Economic Journal, Royal Economic Society, vol. 117(523), pages 1310-1335, October.
    7. Wilson, John Douglas & Wildasin, David E., 2004. "Capital tax competition: bane or boon," Journal of Public Economics, Elsevier, vol. 88(6), pages 1065-1091, June.
    8. FitzGerald, Valpy, 2004. "Global financial information, compliance incentives and terrorist funding," European Journal of Political Economy, Elsevier, vol. 20(2), pages 387-401, June.
    9. Slemrod, Joel & Wilson, John D., 2009. "Tax competition with parasitic tax havens," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1261-1270, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2010019. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS). General contact details of provider: http://edirc.repec.org/data/coreebe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.