is the post fossil era necessarily post capitalistic the robustness and capabilities of green capitalism abstract our central target is to show that capitalism is not only much more robust to crises than presumed by its critics but also features promising capabilities with regard to solving the environmental crisis to elaborate this thesis we analyse how far capitalism can survive given the end of fossil energy carriers and may maintain its productivity under the preconditions of a regenerative energy system in a further step we demonstrate that crises may actually provide the prerequisites of the economy s transformation towards sustainability we argue that especially competitive capitalism as analysed by schumpeter offers excellent preconditions for generating environmental innovations however we will also point out the numerous social problems of green infrastructure projects in the last section we assume that markets alone will not suffice to concertedly solve the global environmental crisis here political action is needed that pools societal forces with regard to the ecological challenges hence specifically promoting desirable innovations the usefulness of state measures is to be judged in correlation to the respective specific national political and economic contexts a generalised opposition to capitalistic social orders disregards the complexity of these contexts and is at danger of omitting decisive determinants of crisis management

energy transition poverty and inequality in vietnam this paper investigates energy transition energy poverty and energy inequality in vietnam employing a longitudinal dataset of a nationally representative household survey we use the data on residential energy expenditure of more than 9 000 households over the period 2004 2016 we find a transition from traditional energy to modern energy but this transition varies across regions between ethnic and welfare groups and between rural and urban population the poor and ethnic minority households still rely heavily on traditional energy sources such as coal and biomass to meet their energy demands electricity poverty has decreased but energy cost poverty has increased in addition energy inequality tends to decrease at a more significant rate than income and consumption inequalities we propose a national program for energy poverty alleviation be established to devise policies to lower households energy costs further assistance to the poor and ethnic minority households is also recommended so that they can afford a higher level of electricity consumption

prioritizing sustainable electricity production technologies mcdm approach abstract economic technological social and political developments stressed the need for shifts in energy mix therefore it is important to provide a rationale for sustainable decision making in energy policy the aim of this paper is to develop the multi criteria decision support framework for choosing the most sustainable electricity production technologies given selection of sustainable energy sources involves many conflicting criteria multi criteria decision methods multimoora and topsis were employed for the analysis the indicator system covering different approaches of sustainability was established the analysis proved that the future energy policy should be oriented towards the sustainable energy technologies namely water and solar thermal ones it is the proposed multi criteria assessment framework that can constitute a basis for further sub regional optimization of sustainable energy policy

raiders or saviors the evidence on six controversial investors abstract carl icahn irwin jacobs carl lindner david murdock victor posner and the late charles bluhdorn are usually portrayed as corporate raiders the evidence here however shows that between 1977 and 1982 when it was first announced that they had purchased stock in a given firm stock prices on average increased significantly the investors activities in target firms for the two years following the initial stock purchase are likewise inconsistent with raiding we discuss two hypotheses that are consistent with the evidence first these investors improve the management of target firms second they are systematically able to identify under priced stocks

the normative significance of using third degree stochastic dominance in comparing income distributions abstract third degree stochastic dominance tsd has been promoted as a normative criterion to refine the partial ordering over income distributions induced by second degree stochastic dominance i e the lorenz criterion this paper enhances our understanding of the normative properties of tsd by defining a rawlsian composite transfer to be a progressive transfer combined with a regressive transfer with the former taking place in a lower income region we show how tsd is a rawlsian extension of the lorenz criterion we also show how this property is affected by changes in the original vector of incomes journal of economic literature classification number d63

the irony of state strength comparative responses to the oil shocks in the 1970s like two gigantic waves the oil shocks crested over the advanced industrial world during the 1970s the relatively stable postwar petroleum regime managed by the large oil firms and protected by american diplomatic and military strength collapsed in seven years crude oil prices adjusted for inflation increased more than 500 percent a multitude of national security economic and political challenges confronted the advanced industrial states but unlike war where the threat is observable and lines of conflict quickly become apparent the oil shocks cast up problems that were more insidious problems of energy security economic adjustment and industrial competitiveness these international dilemmas could be defined in various ways and a host of policy responses could be brought to bear upon them

reputation and imperfect information abstract a common observation in the informal literature of economics and elsewhere is that is multistage games players may seek early in the game to acquire a reputation for being tough or benevolent or something else but this phenomenon is not observed in some formal game theoretic analyses of finite games such as selten s finitely repeated chain store game or in the finitely repeated prisoners dilemma we reexamine selten s model adding to it a small amount of imperfect or incomplete information about players payoffs and we find that this addition is sufficient to give rise to the reputation effect that one intuitively expects

a strategic analysis of sinking fund bonds abstract unlike most securities the pricing of sinking fund bonds is influenced by the distribution of ownership which summarizes the extent to which the market is cornered the effect of the distribution of ownership on the pricing of sinking fund bonds is examined by an explicit game in which the price obtained for bonds sold can depend upon the size of the investor s position this framework is used to contrast the valuation of sinking fund bonds with the valuation of amortizing bonds and straight debt we show that it is generally incorrect to view sinking fund bonds as being equivalent to serial bonds

a theory of acquisition markets mergers versus tender offers and golden parachutes we develop a model of the acquisition market in which the acquirer has a choice between two takeover mechanisms mergers and tender offers a merger is modeled as a bargaining game between the acquiring and target firms whereas a tender offer is modeled as an auction in which bidders arrive sequentially and compete for the target at any stage of the bargaining game the acquiring firm can stop negotiating and make a tender offer in equilibrium there is a unique level of synergy gains below which the acquiring firm makes only a merger attempt as it expects to lose in the competition resulting from a tender offer for synergy gains above this level tender offers can occur however to get tender offers target shareholders must give their managers golden parachutes that give higher payoffs in tender offers than in mergers article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

understanding technology choice in electricity industries a comparative study of france and denmark abstract the ability to predict how national electricity industries will respond to the challenges of competition and the demand for sustainability requires a good understanding of the nature of technological systems and a workable theory of technology choice so far two distinct theoretical perspectives the economic and socio political concepts of technological systems have competed for dominance in policy analysis and policy making this paper is a comparative study of the way in which the electricity industries of denmark and france responded to a series of challenges beginning with the 1973 oil crisis and continuing through the present push to liberalise electricity markets focussing on the forces that directed technological change in these two nations i examine the relative importance of economic and socio political factors my analysis indicates that socio political factors which together can be described as political traditions have shaped technology choice the danish and french electricity industries have pursued several objectives in addition to economic efficiency this has limited the function of free markets thus they should be understood as political structures whose most important characteristic is the distribution of power in this context the economic perspective represents a normative demand for the re arrangement of political values technological choice which radically departs from the status quo implies a significant redistribution of political power and is therefore very difficult

energy transition and path creation for natural gas in the brazilian electricity mix abstract emerging economies will account for more than 90 of net energy demand growth to 2035 although there is international consent about the need for reducing green house gas ghg emissions reduction targets have been left to governments responsibility such opening lead to different energy policies and approaches among countries specially comparing developing economies to developed ones technology development and new reserves found have set natural gas as the lead resource for transitioning energy mixes to lower carbon levels however hydropower has been the main source for the brazilian electricity grid and increasing dispatch of natural gas in fact increases ghg which has been the core of current brazilian energy policies we estimated future brazilian market shares of hydro thermal wind and nuclear power through historical data analysis of power dispatch and installed capacity the findings propose that current brazilian administration is creating a new technological path which will lead far from the desired ghg targets if actual growth rate of thermal power continues by the year 2022 thermal plants will be major suppliers of the brazilian electricity grid leaving hydro with the second largest market share furthermore we propose several approaches for increasing adoption of renewable distributed generation and the development of other market niches for natural gas in brazil as alternative paths

equilibrium in a market with sequential bargaining this paper considers a market where pairs of agents who are interested in carrying out a transaction are brought together by a stochastic process and upon meeting initiate a bargaining process over the terms of the transaction the basic bargaining problem is treated with the strategic approach the paper derives the steady state equilibrium agreements analyzes their dependence on market conditions such as the relative numbers of agents of different types and discusses their relations with the competitive equilibrium outcome and other results in the search equilibrium literature this paper considers a market that operates in the following way pairs of agents who have mutual interest in carrying out a transaction are brought together by a stochastic process when two agents meet they initiate a bargaining process over the terms of the transaction if two agents reach an agreement a transaction takes place and they leave the market of course the bargaining positions and hence the agreement reached in any particular meeting will be affected by the conditions prevailing in the market these will include the chances that each of the negotiating parties have of meeting other partners in the event that the agreement in the current negotiations is delayed also the expected length of time required to achieve an alternative transaction and the expected behavior of alternative partners the study of such a market mechanism is of interest for two reasons firstly it captures some realistic aspects of the trade in certain specific markets e g asset markets such as housing and some labor markets secondly it contributes to an understanding of the micro mechanisms of price formation and their role in shaping market outcomes in both cases the features studied are largely neglected in the traditional market equilibrium analyses the related literature includes the articles by diamond 4 5 diamond and maskin 6 mortensen 8 9 and zusman and bell 13 these articles consider markets of the type described above in which transactions are concluded at pairwise meetings of agents the major difference between our work and these articles is in the approach to the basic bargaining problem in the cited articles it is assumed that a meeting is concluded with an instantaneous agreement which divides the associated surplus in an arbitrary predetermined way when the surplus is assumed to be divided equally the division rule is in fact nash s axiomatic bargaining solution in contrast the present paper treats the basic bargaining problem with the strategic approach see rubinstein 19 which constitutes an attempt to look into the bargaining black box this approach explicitly models the time dimension of the bargaining process describes in detail the bargaining procedure and justifies the agreement as a perfect equilibrium in

collars and renegotiation in mergers and acquisitions i examine the motivation for and effect of including a collar in a merger agreement the most important cross sectional determinants of the bid structure cash vs stock and whether to include a collar are the market related stock return standard deviations for the bidder and target this evidence supports the hypothesis that the method of payment is dependent on the sensitivities of the bidder and target to market related risk because either has the incentive to demand renegotiation of the merger terms if the value of the bidder s offer changes materially relative to the value of the target during the bid period an important decision made during merger or takeover negotiations is the method of payment to be offered to target shareholders takeover bids can be made in cash and or some combination of securities issued by the bidding firm a considerable number of papers in the finance literature provide empirical evidence on the determinants of the choice between stock and cash as the method of payment including carleton et al 1983 niden 1986 crawford 1987 auerbach and reishus 1988 amihud lev and travlos 1990 chaney lovata and philipich 1991 and martin 1996 however this literature typically ignores the increasing fraction 20 in recent years of stock merger bids that contain a collar while an ordinary stock merger bid specifies the number of bidder shares offered as consideration for each target share the exchange ratio a collar bid provides for certain changes in the exchange ratio conditional on the level of the bidder s stock price around the effective date of the merger often insulating target stockholders from volatility in the bidder s stock price and promising a cash like payoff at the end of the bid period collar bids come in two basic forms the first which i call fixed exchange fex specifies a constant exchange ratio over a range of bidder stock prices with adjustment to the ratio outside those bounds an example of this type of transaction is the merger agreement announced on january 17 1994 between

optimal toeholds in takeover contests abstract we offer an explanation for why raiders do not acquire the maximum possible toehold prior to announcing a takeover bid by endogenously modeling the target firm s value following an unsuccessful takeover we demonstrate that a raider may optimally acquire a small toehold even if the acquisition does not drive up the pre tender target price this occurs because although a larger toehold increases profits if the takeover succeeds it also conveys a higher level of managerial entrenchment and hence a lower firm value if the takeover fails we derive new predictions regarding the optimal toehold and target value following a failed takeover we also examine the impact of a rival bidder and dilution

energy transitions and national development indicators a global review of nuclear energy production abstract energy use plays a vital role for human well being however human well being can also be affected by socio economic and environmental impacts associated with the use of different primary energy sources nuclear energy production is perceived as one means of satisfying national energy demand while contributing to a potentially sustainable energy transition the objective of this study is to further understand socio economic environmental and technological factors that characterize countries that choose nuclear energy production hence this exploratory study reviews the socio economic contexts of nuclear energy producing countries in comparison to countries without nuclear energy use the study is based on world development indicators published by world bank for 213 countries between 1960 and 2013 and follows two analytical steps first based on a comparison of countries average development indicator values over time we descriptively explore which socio economic environmental and technological factors characterize the spectrum of countries following different nuclear energy strategies no nuclear production phase out planning to produce produce nuclear energy second we statistically analyze nuclear energy producing countries exploring if there was significant change in socio economic environmental and technological characteristics after the start of nuclear energy production characteristics of our four country groups revealed nuclear countries incl phase out used more energy per capita and showed higher levels of carbon emissions as well as household consumption compared to countries planning to use nuclear energy and countries without nuclear energy use adoption of nuclear energy does not appear to reduce fossil fuel use or enable energy independence hence our study did not provide evidence that nuclear energy production can be seen as technological answer to global challenges like climate change or unequal energy distribution it is therefore unclear if and how nuclear energy contributes to global human well being as part of sustainable development

the coming sustainable energy transition history strategies and outlook abstract facing global climate change and scarce petroleum supplies the world must switch to sustainable energy systems while historical transitions between major energy sources have occurred most of these shifts lasted over a century or longer and were stimulated by resource scarcity high labor costs and technological innovations the energy transition of the 21st century will need to be more rapid unfortunately little is known about how to accelerate energy transitions this article reviews past transitions and factors behind them along with their time frames three modern case studies are discussed brazil which shifted from an oil based transportation system to one based on sugarcane ethanol success france which shifted from oil fired electric power to nuclear power success and the united states which attempted to shift from foreign oil to a mix of domestic energy resources failure lessons from these attempts to govern energy transitions are discussed several policy instruments to accelerate a transition are identified though even under ideal circumstances a global energy supply transition will be very slow given the need to simultaneously implement programs in countries with different political economies a greater focus on energy efficiency promotion of smart grids and possibly a new treaty should yield more timely results

competition and the medium of exchange in takeovers the role of the medium of exchange in competition among bidders and its effect on returns to stockholders in corporate takeovers are investigated consistent with recent empirical evidence our model shows that stockholders of both acquiring and target firms obtain higher returns when a takeover is financed with cash rather than equity and that returns to target shareholders increase with competition the model predicts that the fraction of synergy captured by the target decreases with the level of synergy finally it is shown that as competition increases the cash component of the offer as well as the proportion of cash offered increases article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

non cooperative bargaining theory an introduction the paper provides an informal introduction to some of the main themes of the recent literature on non cooperative or sequential bargaining models it focuses in particular on the relationship between the new approach and the traditional axiomatic approach exemplified by nash bargaining theory it illustrates the new insights offered by the non cooperative approach by reference to a detailed analysis of the manner in which the presence of an outside option available to one of the parties will affect the negotiated outcome finally the difficulties which arise in extending this analysis to two person bargaining with incomplete information and to n person bargaining are discussed this is a revised version of the fourth review of economic studies lecture presented in april 1985 at the joint meeting of the association of university teachers of economics and the royal economic society held in oxford the choice of lecturer is made by a panel whose members are currently professors hahn mirrlees and nobay and the paper is refereed in the usual way this paper aims to provide an informal and elementary introduction to an approach to bargaining which has received a great deal of attention over the past few years the approach involves writing down some particular sequence of moves offers and replies to be made over time in the course of negotiations and then looking for a non cooperative equilibrium in the game thus specified in practice a perfect equilibrium or in games of incomplete information a sequential equilibrium while the approach appears at first sight to be very different in spirit from the traditional axiomatic approach in which a bargaining solution is specified by appealing to a number of general requirements which are deemed appropriate on the basis of some a priori considerations the two approaches are in fact complementary while the

competing bids target management resistance and the structure of takeover bids we examine the structure of initial takeover bids and the frequency of observing competing bids and target management resistance we find the use of cash is not consistently correlated with the frequency of competition or resistance and that the cost of acquiring information about a target is associated with the likelihood of competition and resistance a high bid premium appears to deter competing offers and is also associated with a lower likelihood of resistance finally target management resistance is associated with an increased likelihood of a competing offer arising and a larger increase in target shareholder wealth between the initial public announcement and outcome dates relative to the not resisted subsample for both successful and unsuccessful acquisition proposals article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

contract renegotiation and coasian dynamics consider a long term relationship between a seller and a buyer whose valuation for a per period service or a durable good is private as trade progresses the valuation will be partially revealed and it may be impossible for the parties to commit ex ante not to take advantage of this we analyse this situation first by supposing that the parties can sign a sequence of short term contracts and secondly by supposing that they can sign a long term contract but cannot commit not to renegotiate it later we find a close relationship in the second case between the optimal long term contract and the non commitment outcome in the standard coasian durable good model our results also have implications for hidden information principal agent models

corporate takeover bids methods of payment and bidding firms stock returns this study explores the role of the method of payment in explaining common stock returns of bidding firms at the announcement of takeover bids the results reveal significant differences in the abnormal returns between common stock exchanges and cash offers the results are independent of the type of takeover bid i e merger or tender offer and of bid outcomes these findings supported by analysis of nonconvertible bonds are attributed mainly to signalling effects and imply that the inconclusive evidence of earlier studies on takeovers may be due to their failure to control for the method of payment recent studies on corporate takeovers provide inconclusive results on the valuation effects of acquisitions on the common stock of bidding firms 1 substantial differences are reported between the studies that analyze acquisitions initiated as tender offers and those that confine their samples to merger proposals the existence of mixed empirical findings for the bidding firms makes it difficult to interpret existing evidence and to draw conclusions about the managers acquisition motivations nevertheless the reason for the substantial difference between empirical findings on mergers and tender offers still remains an unresolved issue it is observed however that mergers are usually common stock exchange offers whereas tender offers are usually cash offers given that different methods of financing a project have different signalling implications myers and majluf 39 the differential stock returns of bidders in mergers and tender offers may be due to the method of acquisition financing

on the structure of take over models and insider outsider conflicts in negotiated take overs abstract we model a takeover game where the players can bid or bargain without the traditional exogenous constraints on the order length and number of alternating stages in our european setting dominant shareholders can appoint and dismiss management implying that we have an insider outsider conflict rather than a management shareholder agency problem and that the distribution of sizeable private benefits is a crucial issue the bargaining solution determines the price even if no explicit negotiations are observed while bargaining strength and scope for exclusion determine the type of takeover pre negotiated or not discriminatory or not

predation reputation and entry deterrence abstract economists often argue that predatory practices are irrational since there exist cheaper or more certain means to gain or maintain a monopoly our gametheoretic equilibrium analysis suggests that if a firm is threatened by several potential entrants then predation may be rational against early entrants even if it is costly when viewed in isolation because it yields a reputation which deters other entrants asymmetric information plays a crucial role in our analysis since it provides the rationale for entrants to base their expectations of the firm s future behavior on its past actions the analysis also suggests methods to treat general reputational phenomena

subgame perfect implementation this paper examines the use of stage mechanisms in implementation problems and provides a partial characterization of the set of subgam e perfect implementable choice rules it is shown that in many economic environments virtually an y choice rule can be implemented to illustrate the power of this approach the paper discusses a number of models in which it is possible to implement the first best although it wouldn t have been possible to do so without using stage mechanisms the diversity of these models suggests that subgame perfect implementation may find wide application copyright 1988 by the econometric society

capital and ownership structures and the market for corporate control the author analyzes optimal capital and ownership structures as resulting from anticipated future control contests he focuses on leverage as a device that enables the incumbent management to extract the maximum value from the rival he shows that firm value depends on both capital and ownership structures the analysis leads to the following predictions 1 more efficient managers use less debt 2 firms facing better rivals for control issue more debt and 3 firms with supermajority rules issue less debt several predictions are consistent with known empirical regularities article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

discount schedules and grower incentives in grain marketing in this paper we develop a microeconomic optimization model of grain elevator cleaning and commingling decisions when the firm is faced with different discounting schedules using generalizations of jensen s inequality it is shown that a convex concave discount schedule encourages commingling cleaning however a separate market for cleanings may qualitatively alter the optimal arrangement of grain wheat elevator records are studied to discern whether alternative discount schedules provide elevators with opportunities to cover the costs of rearranging grain composition rearrangement activities appear to be marginally profitable for some dockage levels

regional drivers of on farm energy production in bavaria abstract bavaria s energy policy seeks to increase the share of power supply from renewable sources related to on farm energy production agricultural biogas wind and solar energy from currently 15 to more than 30 in 2021 it is therefore of particular interest for policy makers to identify regional drivers of and barriers to this concept the presented study addresses this issue and applies a spatial regression analysis to bavaria s 71 rural counties the findings indicate significant impacts of technological regional transformation ability agricultural structure degree of professionalization and consolidation of organic farming and neighborhood effects this is in contrast to most geographical factors which seem to be of minor relevance

three laws of energy transitions the paper formulates and explores a hypothesis on three general energy transition laws the law of stable long term energy costs to income ratio the law of improving energy quality and the law of growing energy productivity these laws are essential for shaping long term projections and checking for their consistency all three are rooted in amazingly stable in time and universal across countries energy costs to income ratios limited energy purchasing power sets up thresholds which if exceeded bring asymmetry to energy demand to price elasticity the author believes that the theoretical postulate on the substantial substitution among production factors which is used in the production functions theory may be incorrect in reality innovations mainly lead to the substitution of a low quality production factor with the same yet of a better quality improving energy quality with stable costs to income ratio is accompanied by growing energy productivity energy costs to income thresholds are indicators allowing for better projections of oil prices

managing electric power system transition in china abstract this research studies the low carbon transition of the electric power sector in china using a multi level perspective mlp of niches socio technical regime and landscape as well as literature on innovation systems three lines of thought on transition process are integrated in the paper to probe the possible transition pathways in china a mlp analysis is presented to understand the current niches regime and landscape of china s power sector a brief analysis on the future macroscopic socio economic transition in the process of industrialization urbanization and modernization of chinese society and its implication on power landscape are depicted to prove the urgency and magnitude of transition in china and why systematic transition management is needed five transition pathways namely reproduction transformation substitution reconfiguration de alignment re alignment and reconfiguration with their possible technology options are presented the paper goes further to propose an interactive framework for managing the transition to a low carbon energy system in china representative technology options are appraised by employing innovation theory to indicate the logic of policymaking within the framework institutional gaps in realizing the transition are also addressed the work presented in the paper will be useful in informing policy makers and other stakeholders and may provide references for power sector transition management in other countries

competition among sellers in securities auctions we study simultaneous security bid second price auctions with com petition among sellers for potential bidders the sellers compete by designing ordered sets of securities that the bidders can offer as payment for the assets upon observing auction designs potential bidders decide which auctions to enter we characterize all symmet ric equilibria and show that there always exist equilibria in which auctions are in standard securities or their combinations in large markets the unique equilibrium is auctions in pure cash we extend the model for competition in reserve prices and show that binding reserve prices never constitute equilibrium as long as equilibrium security designs are not call options jel d44 d82 g10 in economic and financial markets rights to control and exploit assets with the potential to generate cash flows are often sold through auctions while in some auc tions the winner s future profits from the asset cannot be used as a basis for payment so only cash bids are possible in many cases it is possible to observe and verify the ex post cash flows this means that bidders can submit their bids in the form of securities the values of which are contingent on future cash flows from the asset securities auctions are common in the real world examples include government sales of oil leases lead plaintiff wireless spectrum and highway building auctions many other transactions though not formally auctions are similar to securities auc tions in nature examples include corporate takeovers intercorporate asset sales book publishing advertising and venture capital markets 1 in this paper we analyze equilibrium auction mechanisms when sellers compete for potential bidders by altering security designs of their auctions rather than reserve prices as in the prior literature specifically we consider an environment in which

energy transition under irreversibility a two sector approach in this paper we analyze the optimal energy transition of a two sector economy energy and final goods with exhaustible oil reserves a renewable source of energy and a pollution threat the latter corresponds to a pollution threshold above which a part of the capital is lost following flooding for instance we show that the optimal energy transition path may correspond to a corner regime in which the economy starts using both resources then crosses the pollution threshold and therefore loses a part of its capital at the end the sole adoption of the renewable energy is optimal only in the long run this result is in line with the asymptotic energy transition arguments stating that the transition to clean energy may happen only in the long run we also show that economy reduces the use of energy resource as long as the productivity of capital and energy services is high therefore public policies should promote investments in energy innovation that targets productive sector home appliances and buildings and helps to save both money and energy we extend the present model to allow for additional investment in energy saving technologies our main results show that this additional investment favours the energy transition in the sense that it increases the time within which the economy may experience the catastrophe and the welfare of the society for policy implications economic instruments such as taxes on dirty energy subsidies on clean energy or incentives for energy saving technologies need to be implemented in order to promote the energy transition this is particularly important for developing countries that mostly rely on polluting energy resources and are the most vulnerable to climate change but those economic instruments should be carefully designed in line with the asymptotic energy transition result

genetically modified crops their market and welfare impacts a framework is developed for examining price and welfare effects of the introduction of genetically modified gm products in the short run non gm grain generally becomes another identity preserved product however more profound market effects are observed under some reasonable parameterizations when calibrated to reflect the u s corn market introducing gm technology increases aggregate welfare over a wide range of scenarios unless the corresponding production cost savings are small and consumers are seriously concerned about gm products the possibility that gm technology may reduce aggregate welfare is interesting because the model assumes rational agents and does not include regulatory constraints

reputation in an internet auction market i introduction without transmission of credible information asymmetries may lead to underproduction of goods or even market failure reputation mitigates inefficiencies associated with information asymmetries by providing an informative signal of quality 1 the difficulty in quantifying reputation means that few studies can analyze empirically the role of reputation in markets our analysis of a quantified market observed measure of reputation provides direct evidence of the effect of a seller s reputation on the terms of a onetime real world transaction thereby contributing empirical support to a fundamental economic principle this study empirically examines person to person transactions within the internet market known as ebay in this virtual market of unseen participants and products buyers and sellers face the risks of repudiation as the counter party may deny the agreement after the fact buyers assume risks associated with lack of seller integrity and asymmetric information about the particular product as the buyer is typically required to send payment before the seller ships the product in addition for many ebay transactions the cost of enforcing a contract is high relative to the transaction s value resulting in a practical absence of legal enforcement 2 by providing a history of trade execution information ebay benefits market participants by reducing information asymmetries while achieving substantial transaction cost economies market participants relate personal experiences which ebay uses to calculate a numerical reputation measure for each user market participants in turn can use this reputation measure to assess counter party risk and adjust bidding behavior accordingly in a sample of 460 auctions held between january 1998 and july 1998 we find a positive relation between prices and ebay s reputation measure higher reputation sellers experience higher auction prices ceteris paribus our findings suggest that repeat players are rewarded for building reputation consistent with the belief that the high reputation seller s value of future transactions outweighs the value of taking advantage of the buyer in the current transaction buyers are willing to pay more to a higher reputation seller this article contributes to the literature not only by providing quantitative support of long accepted reputation theories but also by illustrating the use of nontraditional markets as a natural laboratory for experiments this article is an example of how a newly formed electronic market can provide the elements necessary for analytical research we find that ebay transactions for this item exhibit characteristics similar to transactions in more conventional markets namely 1 prices are higher when there is less quantity supplied when fewer of the items are available the same day 2 prices are lower during periods of lower demand times less likely to have high traffic 3 sellers with higher shipping and handling costs receive lower prices and 4 sellers failing to provide information about shipping and handling fees i e larger information asymmetries receive fewer bids dramatic innovations in online market structure and increasing availability of online market data should enable researchers to examine directly other traditionally non quantifiable economic ideas this article is organized as follows section ii describes how reputation can be used to facilitate transactions in the presence of asymmetric information section iii describes the ebay market summarizes the listing and bidding processes and discusses the reputation mechanism for this market section iv presents the price and reputation descriptive statistics associated with a consistently auctioned item and reports the empirical findings of how this item s highest bid price varies with the level of the seller s reputation we conclude in section v with a discussion of ebay s continued attempts to add value to the market through recent structural changes

crossing takeover premiums and mix of payment an empirical test of contractual setting in m a transactions the analyses of the tender offer premiums and of the means of payment should not be performed separately in the empirical literature these two variables are often considered independently although they may have an endogenous relationship in a contractual setting using a sample of european m as over the 2000 2010 decade we show that these two variables are jointly set in a contractual empirical approach the relationship between the percentage of cash and the offer premium is positive higher premiums yield payments with more cash we highlight that the payment choice is not a continuum between full cash and full share payments two different regimes of payment in m a transactions are empirically characterized we analyze the major determinants of m a terms when the offer premium and the means of payment are jointly set the underlying rationale of an asymmetry of information and a risk sharing calculus is found to be significant in the setting of the agreement

why hang on to losers divestitures and takeovers we study the divestiture decisions of managers who care about their reputations managers divestiture and investment decisions are publicly observable but managers privately observe signals with respect to the future payoff distribution of investments they have initiated we establish that in equilibrium there is too little divestiture these inefficiencies create the opportunity for wealth enhancing divestiture motivated takeovers a key result is that only managers of targets with middle of the road asset specificity should consider the takeover threat credible these findings suggest that uniqueness of assets is an important determinant of both agency costs and takeover activity our analysis leads to several empirical predictions overwhelming empirical evidence has documented large gains in shareholder wealth that arise from takeovers jarrell brickley and netter 1988 and jensen and ruback 1983 the source of these gains has remained elusive however although takeovers are followed by some infusion of new managerial talent we have not witnessed the kind of profound post takeover restructuring of the productive activities of target firms that would readily justify the documented wealth gains a commonly observed post takeover initiative is divestiture of some of the target s lines of business bhide 1989 and bhagat shleifer and vishny 1990 what is puzzling is that if the gains from takeovers stem from the anticipation of such divestitures then why were these divestitures not undertaken by the target firm s management in the first place the purpose of this paper is to provide a possible answer to this question our focus is on the divergence in incentives between managers and shareholders with respect to divestitures of ongoing projects we show that managers might rationally decide to hang on to projects that should be divested in

repetition reputation and raiding i develop a multitarget takeover model with bid revisions in which bidders desire a reputation for having low valuations such a reputation increases the likelihood that future targets will accept low premium bids bidders develop reputation by using low take it or leave it offers consequently tender premiums bid revision rates and success rates are lower for continuing bidders than for those considering only a single target success rates vary within a series and reputation building is more likely with highly correlated target valuations i provide an exploratory empirical analysis consistent with lower premiums from continuing bidders and discuss some resulting implications regarding raiders conglomerates and resistance strategies article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies