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In models of non-deterministic contest, players exert irreversible effort in order to increase their probability of winning a prize. The most prominent functional form of the win probability in the literature is the so-called logit" contest success function. We provide a simple micro-foundation...
Persistent link: https://www.econbiz.de/10010266296
Proxy wars are a key pattern of political conflict and interstate competition. Rather than resorting to direct conflicts, which are costly and entail a higher level of uncertainty, governments may opt for proxy wars, which may last longer, but are less costly and render them more immune to...
Persistent link: https://www.econbiz.de/10011807010
I examine a class of utility maximization problems with a not necessarily lawinvariant utility, and with a not necessarily law-invariant risk measure constraint. The objective function is an integral of some function U with respect to some probability measure P, and the constraint set contains...
Persistent link: https://www.econbiz.de/10010352854
We consider a general framework of optimal mechanism design under adverse selection and ambiguity about the type distribution of agents. We prove the existence of optimal mechanisms under minimal assumptions on the contract space and prove that centralized contracting implemented via mechanisms...
Persistent link: https://www.econbiz.de/10012290373
The variable threat-bargaining model of Nash (1953) assumes that threats in the senseof binding commitments as to what one will do if bargaining ends in conflict, are chosenbefore bargaining. By comparison, late threats to be chosen after bargaining end in conflict,appear more natural and would...
Persistent link: https://www.econbiz.de/10005867010
In this paper we study the robustness of the deadline effect in bargaininggames using constant and slowly decreasing pies, different time horizons,and both constant and alternating role modes. With decreasing pies efficiency requires early agreements while constant pies allow for efficient late...
Persistent link: https://www.econbiz.de/10005867328
We often observe minority ethnic groups at a disadvantage relative to the majority. Why is this and what can be done about it? Efforts made to assimilate, and time, are two elements working to bring the minority into line with the majority. A third element, the degree to which the majority...
Persistent link: https://www.econbiz.de/10005859495
We investigate fairness preferences in matching mechanisms using a spectator design. Participants choose between the Boston mechanism or the serial dictatorship mechanism (SD) played by others. In our setup, the Boston mechanism generates justified envy, while the strategy-proof SD ensures...
Persistent link: https://www.econbiz.de/10014467804
This paper examines the consequences of a government mimicking the policy of its competitor by studying the introduction of the welfare state in 19th century Germany. The reform conducted by the conservative government targeted blue-collar workers and aimed to reduce the success of the socialist...
Persistent link: https://www.econbiz.de/10014467872
One of the primary objectives of protests and demonstrations is to bring social, political, or economic issues to the attention of politicians and the wider population. While protests can have a mobilizing and persuading effect, they may reduce support for their cause if they are perceived as a...
Persistent link: https://www.econbiz.de/10014515207