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It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the...
Persistent link: https://www.econbiz.de/10012772631
We consider a two-person Cournot game of voluntary contributions to a public good with identical individual preferences, and examine equilibrium aggregate welfare under a separable, symmetric and concave social welfare function. Assuming the public good is pure, Itaya, de Meza and Myles (Econ....
Persistent link: https://www.econbiz.de/10012756257
Leaky-bucket transactions can be regarded as income transfers allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum leakageʺ of transaction costs before income inequality is exacerbated, or before a welfare loss is experienced. This notion...
Persistent link: https://www.econbiz.de/10002796593
I propose a general power index in games. The power of an agent over an outcome is understood as the equilibrium effect … on the outcome of variations in the agent’s preferences. I show that the new index, ∆, has the following properties: (i …) classic measures of freedom of choice are a special case of the ∆ index in the context of individual choice; (ii) the Banzhaf …
Persistent link: https://www.econbiz.de/10014083894
We consider a two-person Cournot game of voluntary contributions to a public good with identical individual preferences, and examine equilibrium aggregate welfare under a separable, symmetric and concave social welfare function. Assuming the public good is pure, Itaya, de Meza and Myles (Econ....
Persistent link: https://www.econbiz.de/10003808609
This study explores the way in which social information about giving impacts the stability of distributional preferences. We designed a two-stage treatment which varied the information participants received about the maximum amounts given to recipients. Information on maximum giving can...
Persistent link: https://www.econbiz.de/10015185109
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Persistent link: https://www.econbiz.de/10009747049
Starting from Schelling (1960), several game theorists have conjectured that payoff equity might facilitate coordination in normal-form games with multiple equilibria - the more equitable equilibrium might be selected either because fairness makes it focal or because many individuals dislike...
Persistent link: https://www.econbiz.de/10010224794