Prior studies have reported a positive correlation between insider trading and stock price changes. The implication of these studies is that insider (i.e., informed) trades have a differential impact on price discovery than non-insider (i.e., uninformed) trades. Based on these results, various...

Families with children receive preferential treatment in the U.S. federal income tax. Over the past 15 years, the real value of child tax benefits approximately doubled reaching nearly $1,900 per child in 2006. This paper examines the efficiency cost of providing child tax benefits. A...

Experimental evidence has accumulated highlighting the limitations of formal and explicit contracts in certain situations, and has identified environments in which informal and implicit contracts are more efficient. This paper documents the superior performance of explicit over implicit...

We modify the self-tuning Experience Weighted Attraction (EWA-lite) model of Camerer, Ho, and Chong (2007) and use it as a computer testbed to study the likely performance of a set of twostate automata in four symmetric 2 x 2 games. The model suggested allows for a richer specification of...

Resource constraints are commonly found in classification tasks. For example, there could be a budget limit on implementation and a deadline for finishing the classification task. Applying the top-down approach for tree induction in this situation may have significant drawbacks. In particular,...

One of the fundamental problems in both economics and organization is to understand how individuals coordinate. The widely used minimum-effort coordination game has been used as a simplifed model to better understand this problem. This paper first presents some theoretical results that give...

This paper examines how consumers respond to a change in a personal income tax provision when there are interactions with other elements of the tax code which makes the financial implications less salient to the taxpayer. We use data from the Consumer Expenditure Survey to provide evidence that...

In many classification tasks, managing costs and completion times are the main concerns. In this paper, we assume that the completion time for classifying an instance is determined by its class label, and that a late penalty cost is incurred if the deadline is not met. This time requirement...

In the Colonel Blotto game, each of two players simultaneously allocates his fixed budget of a resource across a finite number n of battleelds. Within each battlefield, the player that allocates the higher level of the resource wins the battlefield. Each player's payoff is equal to the sum of...

In our original comment, we showed that Hausken's characterization of Nash equilibrium is invalid for much of the parameter space examined and provided necessary conditions for his solution to hold. Most of the comments in his reply are either tangential or irrelevant. However, several of the...