This paper studies the aggregate distribution of declared opinions and behavior when heterogeneous individuals make the trade-off between being true to their private opinions and conforming to an endogenous social norm. The model sheds light on how various punishment regimes induce conformity or...

This paper shows that peer pressure may lead to dynamic convergence to a norm that is skewed with respect to preferences in society, yet is endogenously upheld by the population. Moreover, a skewed norm will often be more sustainable than a representative norm. This may explain the skewness of...

This paper studies theoretically the aggregate distribution of revealed preferences when heterogeneous individuals make the trade o? between being true to their real opinions and conforming to a social norm. We show that in orthodox societies, individuals will tend to either conform fully or...

Aumann--Serrano (2008) and Foster--Hart (2009) suggest two new riskiness measures, each of which enables one to elicit a complete and objective ranking of gambles according to their riskiness. Hart (2011) shows that both measures can be obtained by looking at a large set of utility functions and...

Aumann–Serrano (J Polit Econ 116:810–836, <CitationRef CitationID="CR6">2008</CitationRef>) and Foster–Hart (J Polit Econ 117:785–814, <CitationRef CitationID="CR15">2009</CitationRef>) suggest two new riskiness measures, each of which enables one to elicit a complete and objective ranking of gambles according to their riskiness. These riskiness measures were created with a...</citationref></citationref>

Some legal regimes leave gaps in the protection provided by the law to firm investors. This paper considers the decision by a firm to opt out of the law and bridge those gaps using contracts. Examining the charters of a sample of Mexican firms, we find that private firms often enhance...

This paper shows that a seemingly simple assumption – that agents use a rolling planning horizon – can reconcile the puzzling long run price dynamics of exhaustible resources such as oil, gas and metals. A rolling horizon has the effect of removing the scarcity consideration of resource...

This paper shows that a seemingly simple assumption, regarding the time horizon of economic agents, can reconcile the puzzling long run price dynamics of exhaustible resources such as oil, gas and metals. It does so by exploring the possibility that economic agents use a rolling planning...

Trade with differentiated goods normally provides a form of insurance against disasters, such as floods and fires, through an increasing relative price of goods from the a­fflicted country. With open access renewable resources this is reversed. A country hit by a negative shock recovers faster...