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Capital requirements for government bonds: Implications for bank behaviour and financial stability
Ulrike Neyer,André Sterzel +1 more
TL;DR: In this article, the authors analyzed whether the introduction of capital requirements for bank government bond holdings increases financial stability by making the banking sector more resilient to sovereign debt crises using a theoretical model.
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Abstract: This paper analyses whether the introduction of capital requirements for bank government bond holdings increases financial stability by making the banking sector more resilient to sovereign debt crises. Using a theoretical model, we show that a sudden increase in sovereign default risk may lead to liquidity issues in the banking sector. Our model reveals that in combination with a central bank acting as a lender of last resort, capital requirements for government bonds increase the shock-absorbing capacity of the banking sector and thus the financial stability. The driving force is a regulation-induced change in bank investment behaviour.
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Citations
Looking at the bright side: The motivational value of confidence
TL;DR: This paper showed that negative debiasing information on individual ability diminishes effort provision, a result that is of obvious relevance for many contexts such as labor relations or learning at school, and also offer a strategy for identifying significant absolute overconfidence at the individual level.
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Margin Squeeze: An Above-Cost Predatory Pricing Approach
Germain Gaudin,Despoina Mantzari +1 more
TL;DR: In this article, a new legal perspective for the antitrust analysis of margin squeeze conducts is provided, based on recent economic analysis, which shows that margin squeezes should solely be evaluated under adjusted predatory pricing standards, which can reduce both the risks of false positives and false negatives in margin squeeze cases.
Collusion and bargaining in asymmetric Cournot duopoly: An experiment
TL;DR: In this paper, the authors investigate how players cooperate (collude implicitly and explicitly), if at all, in asymmetric dilemma games without side payments, and they show that with communication, inefficient firms gain at the expense of efficient ones.
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Local market structure and consumer prices: Evidence from a retail merger
TL;DR: In this paper, the effects of a merger between a German supermarket chain and a soft discounter on consumer prices were analyzed and shown that both insiders and outsiders raised average prices after the merger, particularly in regions with high expected change in retail concentration.
94
Capacity constraints, price discrimination, inefficient competition and subcontracting
Matthias Hunold,Johannes Muthers +1 more
- 01 Jan 2017
TL;DR: In this paper, the authors characterize mixed-strategy equilibria in a setting with capacity constrained suppliers which can charge location based prices to different customers, and show that the equilibrium prices weakly increase in the transport distance between supplier and customer, whereas the margins decrease.
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Seeking risk or answering smart? Framing in elementary schools
TL;DR: In this article, the authors investigated how framing manipulations affect the quantity and quality of decisions in a field experiment in elementary schools, where pupils were randomly assigned to one of three conditions in a multiple-choice test: (i) gain frame (Control), (ii) loss frame (Loss) and (iii) gainframe with a downward shift of the point scale (Negative).
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