For T → cl/2, (14) converges to
—Cl — (ch — cl) + ʒ- (c + cl) — ~PlCl — (ch — c) < 0.
2 2 2
Moreover, deriving (14) with respect to T yields
∂V∕ (T)
∂T
1 Ph / x i-ɪ „
-—(ch — Cl) e2 cl + рн > 0.
2 cl
If cl/2 — cl In pH <T < c/2, using again (4) and (8) we have
Vi (T) — —cl — pH (T + “ù--cl + cl lnpH) + pH (^ + T)
(15)
and
∂Vi1 (T )
∂T
—pH + pH > 0.
(iii) With (4), i gets υ — c if he does not become informed. By the same argument as
in (i) for T > c/2, z’s ex ante payoff in case (I, I) must be strictly larger than υ — c,
and thus Vi1 > 0 for all T ∈ (c/2, ch/2).
(iv) In (ii), monotonicity has been shown for T < c/2. Now suppose that T >
c/2. Consider first the case where T is smaller than cl/2 — cl lnpH, i.e. T ∈
(c/2,cl/2 — cllnpH). (For a sufficiently large pH, this interval is empty.) Then,
with (6) and (8),
p Prr i_τ i τ
Vi1 (T) — —Cl — -^~(ch — Cl) C2 cL + рнce 2 + ð (16)
2
and
∂Vi1 (T )
∂T
Ph , i i--T- _i+τ „
— — (ch — Cl) e2 cl + Phe 2 + ð > 0.
2cl
Now suppose T is larger than cl/2 — cllnpH, but smaller than c/2 — clnpH, i.e.
T ∈ (cl/2 — cl lnpH, min {c/2 — clnpH,ch/2}). (This interval may be empty for a
32
More intriguing information
1. CONSIDERATIONS CONCERNING THE ROLE OF ACCOUNTING AS INFORMATIONAL SYSTEM AND ASSISTANCE OF DECISION2. Passing the burden: corporate tax incidence in open economies
3. Expectations, money, and the forecasting of inflation
4. Hemmnisse für die Vernetzungen von Wissenschaft und Wirtschaft abbauen
5. The name is absent
6. Qualifying Recital: Lisa Carol Hardaway, flute
7. The name is absent
8. Centre for Longitudinal Studies
9. From music student to professional: the process of transition
10. EU enlargement and environmental policy