Showing papers by "Jean Tirole published in 2023"
TL;DR: In this paper , the authors discuss two emblematic examples of mission expansion: socially responsible competition authorities and green central banks, and warn against the risks associated with the loss of accountability, institutional conflicts, and the lack of policy coordination.
Abstract: Should agencies confine their role to their main duty or should they embrace new and desirable societal objectives? This article first discusses two emblematic examples of mission expansion: socially responsible competition authorities and green central banks. It then sheds light on the ongoing debate using contributions to bureaucratic design in economics and political science. On that basis, it warns against the risks associated with the loss of accountability, institutional conflicts, and the lack of policy coordination.
1 citations
TL;DR: In this paper , the economic implications of cognitive traps, disclosure, and cognitive styles are analyzed for games of interest (e.g., trade, entry, leadership, and partnership environments).
Abstract: In many games of interest (e.g., trade, entry, leadership, warfare, and partnership environments), one player (the leader) covertly acquires information about the state of Nature before choosing whether to engage with another player (the follower). The friendliness of the follower’s reaction depends on his beliefs about what motivated the leader’s choice to engage. We provide necessary and sufficient conditions for the leader’s value of acquiring more information to increase with the follower’s expectations. We then derive the economic implications of this characterization, focusing on three closely related topics (cognitive traps, disclosure, and cognitive styles), and drawing policy implications.
TL;DR: The authors predict that global banks are global in life and national in death; and that they become less global when banking is competitive, times are turbulent, and international risk sharing (say, through swap lines) weak.
Abstract: “Industrial monetary policies” refer to liquidity support programs through which authorities shape the location and continuation of financial activity on their soil. Banks’ locus of activity depends on their prospect of receiving liquidity support and therefore on factors such as countries’ relative resilience. We predict that global banks are global in life and national in death; and that they become less global when banking is competitive, times are turbulent, and international risk sharing (say, through swap lines) weak. We analyse both the competitive benefits of industrial monetary policies as well as their limitations, such as currency appreciation.