Topic: Endogenous Group Formation and Monitoring
Speaker: ZHANG Hu
Abstract: In this paper, we investigate the issue of endogenous group formation by considering the information transmission efficiency. With three examples, we show that the optimal group structure should minimize the distortion induced by information imperfection. By peer monitoring with joint liability, players would have incentive to disclose miscreant actions they observed. As a result, private information is transformed into public information which helps forming efficient equilibrium.
Date: May 30, 2019
Location: Room 712, Academic Hall, City Campus,CUFE