arXiv subjects

Stefan Behringer

Publications and source records attributed to Stefan Behringer.

3 recordsLinked to original sources

arXiv2023

The Value of Information and Circular Settings

We present a universal concept for the Value of Information (VoI), based on the works of Claude Shannon's and Ruslan Stratonovich that can take into account very general preferences of the agents and results in a single number. As such it is convenient for applications and also has desirable properties for decision theory and demand analysis. The Shannon/Stratonovich VoI concept is compared to alternatives and applied in examples. In particular we apply the concept to a circular spatial structure well known from many economic models and allow for various economic transport costs.

econ.TH↗

arXiv2021

Expanding Multi-Market Monopoly and Nonconcavity in the Value of Information

In this paper I investigate a Bayesian inverse problem in the specific setting of a price setting monopolist facing a randomly growing demand in multiple possibly interconnected markets. Investigating the Value of Information of a signal to the monopolist in a fully dynamic discrete model employing the Kalman-Bucy-Stratonovich filter, we find that it may be non-monotonic in the variance of the signal. In the classical static settings of the Value of Information literature this relationship may be convex or concave, but is always monotonic. The existence of the non-monotonicity depends critically on the exogenous growth rate of the system.

econ.TH↗

arXiv2017

Cournotian dynamics of spatially distributed renewable resources

We extend modern Walrasian economics, and in particular the results on Cournot convergence and dynamics, by focusing on renewable resources in a spatial setting. Building on the harvesting model of Behringer and Upmann (2014) we endogenize prices and investigate the two cases of durable and non-durable renewable commodities. We find that endogenizing prices is sufficient to prevent the full exploitation result and look at how competition affects not only the stock but also the temporal incentives for exploitation. We derive convergence results in static and dynamic settings which suggest that the classical Cournotian outcomes may prevail.

math.OC↗