Showing 1 - 10 of 15
We study the influence of reason and intuition on decision making over time. Facing a sequence of similar problems, agents can either decide rationally according to expected utility theory or intuitively according to case-based decision theory. Rational decisions are more precise but create...
Persistent link: https://www.econbiz.de/10013030327
Is there a link between public debt and wealth inequality? Could government bondholders use intra-generational redistribution strategically to make the repayment of debt politically viable? Using a two-generations game-theoretic model, we identify coordination and divide-and-conquer as key...
Persistent link: https://www.econbiz.de/10012980578
We study the influence of reason and intuition on decision making over time. Facing a sequence of similar problems, agents can either decide rationally according to expected utility theory or intuitively according to case-based decision theory. Rational decisions are more precise but create...
Persistent link: https://www.econbiz.de/10011103391
We study a two-sided markets model of two competing television stations that offer content of differentiated quality to ad-averse consumers and advertising space to firms. As all consumers prefer high over low quality content, competition for viewers is vertical. By contrast, competition for...
Persistent link: https://www.econbiz.de/10009221558
This paper examines the chance of winning a Tullock-contest when participants differ in both their talent and their attitude towards risk. For the case of CARA preferences, it is shown that the winning probability may be higher for a low-skilled agent with a low degree of risk aversion than for...
Persistent link: https://www.econbiz.de/10008833910
We investigate how individual risk preferences affect the likelihood of selecting the more able contestant within a two-player Tullock contest. Our theoretical model yields two main predictions: First, an increase in the risk aversion of a player worsens her odds unless she already has a...
Persistent link: https://www.econbiz.de/10012949244
We examine the strategic use of Corporate Social Responsibility (CSR) in imperfectly competitive markets. The level of CSR determines the weight a firm puts on consumer surplus in its objective function before it decides upon supply. First, we consider symmetric Cournot competition and show that...
Persistent link: https://www.econbiz.de/10012953707
I examine sequential round-robin tournaments with three and four symmetric players. Each player is matched once with each other player. If the matches are organized as Tullock contests (all-pay auctions), the tournament will be almost fair (highly discriminatory): subject to the position of...
Persistent link: https://www.econbiz.de/10012956804
I examine the impact of risk preferences on efforts and winning probabilities in generalised Tullock contests between two players. The theoretical analysis yields two main results. First, I specify a sufficient condition on the agents' comparative prudence under which a higher common level of...
Persistent link: https://www.econbiz.de/10012956876
We provide new experimental evidence which suggests an asymmetric discouragement effect in lottery contests with heterogeneous abilities. Compared to a symmetric contest, subjects invest less effort when facing a stronger opponent, but they invest the same when facing a weaker opponent. Our...
Persistent link: https://www.econbiz.de/10012979585