Asymmetric information, as the adjective indicates, refers to situations, in which some agent in a trade possesses information while other agents involved in the same trade do not. This rather self-evident premise has nevertheless revolutionized modern economic thought since the 1970s. Take, for example, two major results in the economics and finance literature, the first fundamental theorem of...

This paper introduces the option to conduct discovery into a model of settlement bargaining and negative expected value (NEV) suits under asymmetric information. We find that the option to conduct discovery has important effects on the standard model of settlement under asymmetric information for several reasons. First, because discovery is typically cheaper than litigation, it reduces the defe...

INTRODUCTION Surface relief structures at micro and nanoscales are currently focused in different engineering areas. These structures enable special optical, mechanical or chemical properties of the workpiece surfaces. One example is the riblet surface, on which microgrooves are distributed in flow direction. Compared to smooth surfaces ideal riblet structures have been proven to reduce skin fr...

This paper brings mechanism design to conflict resolution. We determine when and how unmediated communication and mediation reduce the ex ante probability of conflict in a game of conflict with asymmetric information. Mediation improves upon unmediated communication when the intensity of conflict is high, or when asymmetric information is significant. The mediator improves upon unmediated commu...