Abstract
This paper examines the practice of ignoring hoarding in the theory of repeated contracts by analyzing a two-period signalling game. It is shown that (a) hoarding could be an equilibrium, and (b) excluding it from the model is equivalent to adding assumptions on the optimal contract.
Original language | English |
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Pages (from-to) | 21-25 |
Number of pages | 5 |
Journal | Economics Letters |
Volume | 35 |
Issue number | 1 |
DOIs | |
State | Published - 1 Jan 1991 |
Externally published | Yes |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics