Francesco Giovannoni

dblp:15/11122 · DBLP profile ↗
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1ranked-venue papers
1as first author
1since 2021 · last 2023
0000-0001-7255-5177ORCID · reported

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Artificial intelligence and machine learning · 1 · 1 first-author · 1 since 2021Theory of computation · 1 · 1 first-author · 1 since 2021
YearPublicationVenuePosition
2023 Pricing Novel Goods
abstract
Consider a pharmaceutical company (the seller) contemplating supplying a vaccine for a new disease to a health authority (the buyer). The production cost is uncertain ex-ante and unverifiable ex-post. Both parties prefer an early agreement. But an early agreement where the price of the vaccine depended on the seller's claim of her future cost realization may not be credible as the seller cannot commit not to report a higher cost to get better terms. We investigate the seller's dilemma: agreeing to terms before knowing the cost allows an earlier transaction but with the aforementioned commitment problem, while deciding terms after learning the cost solves the commitment problem but at the cost of delay.
Francesco Giovannoni, Toomas Hinnosaar
EC1