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This paper analyzes an ongoing bargaining situation in which preferences evolve over time and the previous agreement becomes the next status quo, determining the payoffs until a new agreement is reached. We show that the endogeneity of the status quo induces perverse incentives that exacerbate...
Persistent link: https://www.econbiz.de/10014162072
Students participating in centralised admissions procedures do not typically have access to the information used to determine their matched school, such as other students’ preferences or school priorities. This can lead to doubts about whether their matched schools were computed correctly (the...
Persistent link: https://www.econbiz.de/10014100048
in a contest for a single prize. A risk-neutral principal can affect the outcome of the contest by dividing a given …
Persistent link: https://www.econbiz.de/10012950346
This paper analyzes an ongoing bargaining situation in which preferences evolve over time and the previous agreement becomes the next status quo, determining the payoffs until a new agreement is reached. We show that the endogeneity of the status quo exacerbates the players' conflict of interest...
Persistent link: https://www.econbiz.de/10008748538
This paper presents an extension of the two-period Samaritan’s Dilemma in order to analyze the potential for foreign aid to promote freedom. An example is the United States’ recent opening towards Cuba. It is shown that a donor nation’s dual concern for economic reforms and greater...
Persistent link: https://www.econbiz.de/10011956523
This article investigates rationalizable implementation in social environments where agents can provide hard evidence on the private information they possess. Specifically, we study necessary and sufficient conditions for virtual implementation using a notion of Rationalizability that captures...
Persistent link: https://www.econbiz.de/10012824770
How can we maximize the common good? This is a central organizing question of public policy design, across political parties and ideologies. The answer typically involves the provisioning of public goods such as fresh air, national defense, and knowledge. Public goods are costly to produce but...
Persistent link: https://www.econbiz.de/10014037089
of strategic risk on co-operation. We propose a criterion building on Harsanyi and Selten's (1988) risk dominance concept …
Persistent link: https://www.econbiz.de/10014213776
may destabilize insurance arrangements among the larger group. We therefore consider self-enforcing risk … must itself employ some self-enforcing risk-sharing agreement. We observe that the stability of subgroups is inimical to …) bounded size, a result in sharp contrast to the individual-deviation problem, and that the degree of risk-sharing in a …
Persistent link: https://www.econbiz.de/10014119773
Multiple long run players play one amongst multiple possible stage games in each period. They observe and recall past play and are aware of the current stage game being played, but are maximally uncertain about the future evolution of stage games. This setup is termed an uncertain repeated game....
Persistent link: https://www.econbiz.de/10014076853