This paper examines the interaction between a growth-oriented terrorist organization and an uninformed government based on a two-period signaling game. The terrorists, taking into account the government's counter-terrorism response to first period attacks, gain additional manpower from...

This paper examines the effect of peers on individual risk taking. In the absence of informational motives, we investigate why social utility concerns may drive peer effects. We test for two main channels: utility from payoff differences and from conforming to the peer. We show experimentally...

We modify the classic single-period inventory management problem by assuming that the newsvendor is expectation-based loss averse according to Koszegi and Rabin (2006, 2007). Expectation-based loss aversion leads to an endogenous psychological cost of leftovers as well as stockouts. If there are...

This paper quantitatively explores the role of the demand structure in explaining the relationship between an importer's per capita income and the extensive margin of bilateral trade. The underlying mechanism is based on the fact that agents expand the set of goods they consume with income. This...

We assess the extent of preferences for employment in a collective wage bargaining situation with heterogeneous workers. We vary the size of the union and introduce a treatment mechanism transforming the voting game into an individual allocation task. Our results show that highly productive...

Research about Matthew Boulton in recent years indicates that the background for his business product development was based not only on management plans for his steam engine, but also on cultural factors and new global businesses, e.g. coinage. The Bank of England launches a new ’50 note in...

This article focuses on two distinct faces of globalization: the decrease in trade costs of goods and the decline of affiliation costs of joint ventures by foreign firms with local firms. The decrease of affiliation costs drives relocation of firms from the North to the South. When the market...

It has been noted that there is an inconsistency between the Moldovan monetary authoritiesf declared pursuit of price stability and the de facto exchange rate peg. This paper looks into the exchange rate regime of the Moldovan leu (MDL) aiming to identify the de facto regime, to test whether it...

I present a dynamic evolutionary game model to address the relation between nationalism against immigrants and assimilation of the latter into the host country culture. I assume a country composed of two different large polymorphic populations, one of native citizens and the other of immigrants....

This paper identifies the causes of failure of the nationalisation of the German railway system by the Imperial Railway Office (das Reichseisenbahnamt; REA) that was established during 1873-1874 under the order of Otto v. Bismarck, the first Imperial Chancellor (Reichskanzler). The REA was not...