Earlier experimental evidence indicates that some decision makers under-invest in information when it is costly. This insight is applied to the cost–benefit analysis of the provision of data obtained by satellites. In fields like agriculture, remotely sensed information of great precision can...

This article studies growth and income inequality with a model that makes transparent the role of initial resource endowments, the savings rate and financing opportunities. The frame of presentation is the so-called Kuznets curve. We show under what circumstances the inverted U-shaped curve...

We study how subjects extrapolate simple patterns in financial time series in order to develop a descriptive model of actual agent behavior. The laboratory experiment for this analysis was conducted in both Germany and Japan. Statistical analyses indicate considerable similarity in expectations...

William Stanley Jevons suggested that monetary exchange is socially superior to barter exchange because agents' optimization is simplified by the use of money. We experimentally study how subjects perform under monetary and barter exchange and find that a majority of subjects achieve a higher...