Die US-amerikanische Philosophin Elizabeth Anderson behauptet, dass Unternehmen Diktaturen sind: Die Kapitaleigner herrschten über die Beschäftigten. Kritik an solchen Verhältnissen gäbe es kaum. Das läge daran, dass eine in den Wirtschaftswissenschaften dominierende neoliberale Theorie der...

We show that if sophisticated institutional managers and individual investors perceive tail-risks differently, then a new explanation for the pricing kernel puzzle emerges. We show, by example, that even a tiny difference in tail-risk perception by the two investor types can explain the pricing...

In economic theory, an agent chooses from available alternatives-modeled as a set. In decisions in the field or in the lab, however, agents do not have access to the set of alternatives at once. Instead, alternatives are represented by the outside world in a structured way. Online search results...

In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs....

Modern exchange theories model a large market, but do not explain single exchanges. This paper considers the phenomenon of single exchange and formulates the general exchange problem in the form of a system of two equations, subjective and objective. Subjective equilibrium is given by the...

Models involving human decision-makers often include idealized assumptions, such as rationality, perfect foresight, and access to relevant information. These assumptions usually assure the models' internal validity but, at the same time, might limit the models' power to explain empirical...

Power law distributions are ubiquitous in socioeconomic contexts. While their general properties are well understood, it is often less clear why they regularly appear in empirical data. What are the generative mechanisms leading to power laws, how do they arise in the real world? This paper aims...

This paper explores the repercussions of the COVID-19 pandemic on the banking sector, focusing on the escalation of credit risk and its effects on non-performing loans (NPLs), loan loss provisions, and economic activity in the Republic of Kosovo. Amidst the global health crisis, the banking...

This paper begins by contrasting the caricatures "homo and femina economicus" with "homo and femina realitus". Against this backdrop, the paper considers three "apparently falsified" empirical predictions of the standard expected utility model of individual decision-making concerning...

We introduce a game-theoretic model with switching costs and endogenous references. An agent endogenizes his reference strategy and then, taking switching costs into account, he selects a strategy from which there is no profitable deviation. We axiomatically characterize this selection procedure...