This paper is concerned with the organization of transactions of goods and services between consecutive stages of activity. A traditional theory of organization, transaction-cost economics, assumes that organizational form (market and hierarchy) is adjusted to the attributes of the transactions....

A computational approach towards economics potentially enriches economic science beyond increasing available mathematical techniques. Computational economics (CE) can foster a viable and rich institutional economics that encourages both mathematical rigor and historical relevance while avoiding...

This paper introduces a notion of learning as found in formal learning theory. This concept of learning enables us to investigate the idea that certain market institutions have the desirable property that they reduce the difficulty of adaptive learning, hence facilitating inductive reasoning. To...

Recent policy proposals call for setting up a benchmark indexed bond market to prevent "Sudden Stops". This paper analyzes the macroeconomic implications of these bonds using a general equilibrium model of a small open economy with financial frictions. In the absence of indexed bonds, negative...

In our paper we investigate how network effects influence the dynamics of oligopoly on mature telecommunication markets. The model covers four categories of agents: telecommunication operators, customers joined into housholds and market regulator. The market state aware firms use reinforcement...

This paper sets out first, to quantify the stabilization gains from commitment in terms of household welfare and second, to examine how commitment to an optimal or approximately optimal rule can be sustained as an equilibrium in which reneging hardly ever occurs. We utilize an influential...

Efficient algorithms for diagnosing influential data points are investigated. Techniques examining potentially influential subsets are considered. Given a list of candidate observations, a new row-dropping algorithm (RDA) computes all possible observation-subset regression models. It employs a...

Population aging threatens to severely destabilize the public finances of a majority of European countries. This unfavorable demographic prospect is usually reinforced by a widespread tendency to anticipate retirement. Reversing this tendency has been identified as a crucial factor to improve...

Base rate neglect has been shown to be a very robust bias in human information processing. It has also been show to be ecologically rational in some environments. However, when arguing about base rate neglect usually isolated individuals are considered. I complement these results by showing that...