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We develop an empirical discrete choice interaction model with a finite number of agents. We characterize its equilibrium properties - in particular the correspondence between the interaction strength, the number of agents, and the set of equilibria - and propose to estimate the model by means...
Persistent link: https://www.econbiz.de/10011251677
We argue in this paper that a more active market for corporate control may weaken the takeover threat. We show that an increase in the number of potential raiders tends to decrease the probability of a takeover. This in turn weakens managerial incentives. The lower managerial effort level that...
Persistent link: https://www.econbiz.de/10011251737
The role of anonymity in giving is examined in a field experiment performed in thirty Dutch churches. For a period of 29 weeks, the means by which offerings are gathered is determined by chance, prescribing for each offering the use of either `closed' collection bags or open collection baskets....
Persistent link: https://www.econbiz.de/10011251745
In this paper I derive a complete characterization for the equilibria that may arise in a binary choice interaction model with a ?nite number of interacting agents. In particular, the correspondence between the interaction strength, the number of agents and the set of equilibria is derived.
Persistent link: https://www.econbiz.de/10011251753