This article investigates the relevance of traditional cost-benefit analysis in the context of spatial development. More precisely, in a sequence of spatial models with two centers, we successively consider the impact of households' relocation and urban externalities (congestion, pollution) on...

This paper studies the effects of analogy-based expectations in static two-player games of incomplete information. Players are assumed to be boundedly rational in the way they forecast their opponent's state-contingent strategy: they bundle states into analogy classes and play best-responses to...

We model a financial market in which companies engage in strategic financial reporting knowing that investors only pay attention to a randomly drawn sample from firms' reports and extrapolate from this sample. We investigate the extent to which stock prices differ from the fundamental values,...