Exact(1)
The model shows that: (a) for low design costs of modularity, both open- and closed-source productions are viable systems; (b) closed-source production is more likely to be adopted the greater the expected rents on software; and (c) production efficiency is not a necessary condition for the stochastic stability of a system to obtain.
Similar(59)
So the intermediaries collapse, and the price of land drops from 100 to the expected rent 50.
The expected rent in period 3, and therefore the price of land purchased at the end of period 2, is 50.
As the tool kit notes, inappropriate parking requirements, in particular, can raise the expected rent in a new development by as much as 50percentt, while depriving towns of socially and commercially productive land.
By selecting the financially weakest contractor, stronger price competition (auctions) may not only increase the probability of default but also the contractorsʼ expected rents.
The company expected rents to continue rising and planned to raise them when the existing tenant vacated the property.
In this case, a simple compensation scheme exists that extracts the insolvency administrator's expected rents in the limit and induces no filtering failure at the same time.
To induce immediate participation, the buyer is granted positive expected rents even if his value at arrival is the lowest possible.
In an undominated perfect Bayesian equilibrium (PBE) of an informed seller trading design model the object to be sold is given to the person who values the object most, and all ex-ante expected rents are extracted from all potential buyers.
This is also, of course, the total expected rent over the two periods.
This implies that bidders׳ expected rents go down in equilibrium and gives the first hypothesis.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com