Caps in asymmetric all-pay auctions with incomplete information

We study asymmetric all-pay auctions where two privately informed agents bid for a prize. We show that capping the bids is profitable for a designer who wants to maximize the sum of bids (revenue). This finding confims the results of Che and Gale (1998) in the context of incomplete information and completes the analysis of Gavious, Moldovanu and Sela (2002) by analyzing the case of ex-ante asymmetric players.All-pay auctions

How to Win Twice at an Auction. On the Incidence of Commissions in Auction Markets

We analyze the welfare consequences of an increase in the commissions charged by the organizer of an auction. Commissions are similar to taxes imposed on buyers and sellers and the economic problem that results looks similar to the question of tax incidence in consumer economics. We argue, however, that auction markets deserve a separate treatment. Indeed we show that an increase in commissions makes sellers worse off, but some (or all) buyers may gain. The results are therefore strikingly different from the standard result that all consumers lose after a tax or a commission increase. We apply our results to comment on the class action against Christie’s and Sotheby’s and argue that the method used to distribute compensations was misguided.Auction, Intermediation, Commissions, Welfare

Taming Web Sources with Minute-Made Wrappers

The Web has become a major conduit to information repositories of all kinds. Today, more than 80% of information published on the Web is generated by underlying databases and this proportion keeps increasing. In some cases, database access is only granted through a Web gateway using forms as a query language and HTML as a display vehicle. In order to permit inter-operation (between Web sources and legacy databases or among Web sources themselves) there is a strong need for Web wrappers. Web wrappers share some of the characteristics of standard database wrappers but usually the underlying data sources offer very limited query capabilities and the struc- ture of the result (due to HTML shortcomings) might be loose and unstable. To overcome these problems, we divide the architecture of our Web wrappers into three components: (1) fetching the document, (2) extracting the information from its HTML formatting, and (3) mapping the information into a structure that can be used by applications (such as mediators)

The structure of CEO pay: pay-for-luck and stock-options

We develop a stylized model of efficient contracting in which firms compete for CEOs. The optimal contracts are designed to retain and insure CEOs. The retention motive explains pay-for-luck in executive compensation, while the insurance feature explains asymmetric pay-for-luck. We show that the optimal contract can be implemented with stockoptions based on a single performance measure which does not filter out luck. When the capacity to dismiss underperforming CEOs differs across firms, and the ability of different CEOs is more or less precisely estimated ex-ante, endogenous matching between CEOs and firms can explain the observed association between pay-for-luck and bad corporate governance. The model also predicts that an improvement in the governance of badly governed firms has spillover effects that increase CEO pay in all firms

Building Intelligent Web Applications Using Lightweight Wrappers

The Web so far has been incredibly successful at delivering information to human users. So successful actually, that there is now an urgent need to go beyond a browsing human. Unfortunately, the Web is not yet a well organized repository of nicely structured documents but rather a conglomerate of volatile HTML pages. To address this problem, we present the World Wide Web Wrapper Factory (W4F), a toolkit for the generation of wrappers for Web sources, that offers: (1) an expressive language to specify the extraction of complex structures from HTML pages; (2) a declarative mapping to various data formats like XML; (3) some visual tools to make the engineering of wrappers faster and easier

Redistributive Politics with Distortionary Taxation

This paper proposes a first step towards a positive theory of tax instruments. We present a model that extends models of redistributive politics by Myerson (1993) and Lizzeri and Persico (2001). Two politicians compete in terms of targeted redistributive promises nanced through distortionary taxes. We solve for the case of both targetable and non-targetable taxes. We prove that there is an imperfect efficiency-targetability trade off on the tax side. Politicians prefer targetable taxes over non-targetable ones, especially when the latter are less efficient. Yet, targetable taxation is always used even when it is very inefficient compared to non-targetable t

Electoral incentives, term limits and the sustainability of peace

One of the few stylized facts in international relations is that democracies, unlike autocracies, almost never fight each other. We develop a theoretical model to examine the sustainability of international peace between democracies and autocracies, where the crucial difference between these two political regimes is whether or not policymakers are subject to periodic elections. We show that the fear of losing office can make it less tempting for democratic leaders to wage war against other countries. Crucially, this discipline effect can only be at work if incumbent leaders can be re-elected, suggesting that democracies with term limits should be more conflict prone, particularly when the executive is serving the last possible term. These results rationalize recent empirical findings on how term limits affect the propensity of democracies to engage in conflicts

Kweelt, the Making-of: Mistakes Made and Lessons Learned

In this paper we report our experience in building Kweelt, an open source Java framework for querying XML based on the recent Quilt proposal. Kweelt is intended to provide a reference implementation for the Quilt language but also to offer a framework for all kinds of experiments related to XML including storage, optimization, query language features, etc. And we report in this paper on the differences entailed by the use of two different storage managers, based respectively on character files and relational databases. An important design decision was to do a direct implementation of Quilt. Instead of relying on preconceptions (and misconceptions!) inherited from our database query processing background, we wanted this reference implementation to expose exactly what is easy and what is hard both in terms of expressiveness and of efficiency. The process has lead naturally to what may in hindsight be called mistakes, and to formulate lessons that will hopefully be used in future implementations to mix-and-match pieces of existing technology in databases and programming languages for optimal results