This paper investigates the conventional wisdom that markets should allocate the rights for performing decisional tasks to those players who might be best suited to perform the task. I embed the decisional tasks in a stylised setting of a game, motivated by Littlewood (1953) Red Hat Puzzle,...

Wisconsin’s welfare reform program, Wisconsin Works (W-2), is among the most ambitious and comprehensive state reforms supported by the U.S. government’s Temporary Assistance for Needy Families (TANF) block grant. This paper describes the W-2 program in Wisconsin, compares distinctive...

This paper considers U.S. social policy in the years 1935-1960 through the prism of recurring disagreements over the appropriate balance between social security and individual freedom. The disagreements were sharpest in the 1930s, when the Social Security bill was drafted and revised, and...

We analyze the Nash equilibria of a standard Bertrand model. We show that in addition to the marginal-cost pricing equilibrium there is a possibility for mixed-strategy equilibria yielding positive profit levels. We characterize these equilibria and find that having unbounded revenues is the...

We investigate whether subjects’ behavior in the Arad and Rubinstein (2012) "11-20" game could be well explained by the k-level process described by the authors. We replicated their game in our baseline experiment and provided two other variations that retained the same mixed-strategy...

In the 1990s, companies collected billions in premiums from peculiarly structured put options written on their own stock while almost all of these puts expired worthless. Buyers of these options, primarily �nancial intermediaries, lost money as a result. Although these losses might seem...