In most industries, ranging from information systems development to construction, an overwhelming proportion of projects are delayed beyond estimated completion time. This fact constitutes somewhat of a puzzle for existing theory. The present paper studies project delays and optimal contracts...

This paper proposes an explanation of merger waves based on the interaction between competitive pressure and irreversibility of mergers in an uncertain environment. A set of acquirers compete over time for scarce targets. At each point in time, an acquirer can either postpone a takeover attempt,...

Casual observation suggests that athletics records tend to cluster over time. After prolonged periods without new records, a record breaking performance spurs other athletes to increase effort and thereby repeatedly set new standards. Subsequently, record breaking subsides and the pattern...

Building on the work of Nash, Harsanyi, and Shapley, we define a cooperative solution for strategic games that takes account of both the competitive and the cooperative aspects of such games. We prove existence in the general (NTU) case and uniqueness in the TU case. Our main result is an...

We show that the Aumann-Davis-Maschler bargaining set and the Mas-Colell bargaining set of a non-leveled NTU game that is either ordinal convex or coalition merge convex coincides with the core of the game. Moreover, we show by means of an example that the foregoing statement may not be valid if...

Probability estimation is an essential cognitive function in perception, motor control, and decision making. Many studies have shown that when making decisions in a stochastic operant conditioning task, people and animals behave as if they underestimatethe probability of rare events. It is...

We show that feasible elimination procedures (Peleg, 1978) can be used to select k from m alternatives. An important advantage of this method is the core property: no coalition can guarantee an outcome that is preferred by all its members. We also provide an axiomatic characterization for the...

The traditional premise of criminal law is that criminals who are convicted of similar crimes under similar circumstances ought to be subject to identical sentences. This article provides an efficiency-based rationale for discriminatory sentencing, i.e., establishes circumstances under which...

We consider the classical problem of selecting the best of two treatments in clinical trials with binary response. The target is to find the design that maximizes the power of the relevant test. Many papers use a normal approximation to the power function and claim that Neyman allocation that...