The paper offers a concise proof of a rule attributed to Alfred Marshall concerning the own-price elasticity of a firm's derived factor demand. The derivation uses the implicit function theorem.

This paper explores the consequences of assuming that agents may be unaware of certain outcomes in the state space. One way to construct such a setting is from what we call awareness types. When agents possess limited awareness of the state space, information may be delusive, but agents can...

We show that strictly competitive, finite games of perfect information that may end in one of three possible ways can be solved by applying only two rounds of elimination of dominated strategies.

We estimate remaining life expectancy at age 65 using a very large sample of male German pensioners. Our analysis is entirely nonparametric. Furthermore, the data enable us to compare life expectancy in eastern and western Germany conditional on a measure of socio-economic status. Our findings...

There is an ongoing debate whether frequency judgments are based on mental magnitudes reflecting prior on-line recording of frequencies or on recall content available at the time of judgment. We conducted four experiments to demonstrate that task characteristics can determine which kind of...

The present contribution reviews the procedures (absolute, incremental and marginal capital allocation) as well as the general principles (proportional allocation, covariance-principle, conditional expectation-principle, conditional value-at-risk principle, Euler-principle) for risk based...

Investors and academics increasingly criticize that features of employee stock option (ESO) programs reflect rent-extraction by managers (managerial power view). We use a unique European data set to investigate the relationship between the design of ESO programs and corporate governance...

This paper describes the German pension reform process 1992-2007 with a stress on a remark-able development: the public pay-as-you-go-financed pension system has almost silently moved from a traditional defined benefit system to a system which works in many respects like a defined contribution...