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Hedging risks is an important rationale for the existence of forward markets. However, Allaz and Vila (1993) show that duopolists can also have a strategic motive to sell forward, irrespective of exogenous uncertainties. Moreover, in their model the possibility of forward trading increases...
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This paper investigates why subjects in laboratory experiments on quantity precommitment games consistently choose capacities above the Cournot level - the subgame-perfect equilibrium. We argue that this puzzling regularity may be attributed to players' perceptions of their opponents' skill or...
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we investigate the robustness of results from confidence interval estimation tasks with respect to a number of …Experiments in psychology, where subjects estimate confidence intervals to a series of factual questions, have shown … large share of the overconfidence in interval estimation tasks is an artifact of the response format. Using frequencies and …
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