Experimental economics and neuroeconomics are likely to provide new insights on the individual and sub-individual (neurobiological processes) anchoring of money illusion. In particular, some recent brain studies show that we appear more "motivated" and "rewarded" by nominal rather than real...

Although economics has long been considered as a non-experimental science, the development of experimental economics and behavioral economics is amazingly rapid and affects most fields of research. This paper first attempts at defining the main contributions of experiments to economics. It also...

In macroeconomics, economists introduce most frequently imperfect competition on product markets using the Dixit and Stiglitz (1977) monopolistic competition model. However, by assumption, this framework ignores one important feature of imperfect competition: strategic interactions between...

The aim of this paper is to develop a better understanding of the literature dealing with strategic fiscal behaviours of small EU countries using estimations of tax reaction functions of competing national governments. Deriving a simple model of tax competition in a Nash and Stackelberg game, we...

We revisit the common view that risk sharing enhances risk taking in the context of heterogenous risk sharing in a small economy. Under low volumes of transfers, we express individual risk level in terms of Bonacich measure. We find that heterogeneity combined to strategic interaction imply that...

Biodiversity conservation in low-income economies is a vital issue and hence needs to be addressed for development and poverty eradication. A variety of empirical works exist on the subject, but the focus is often limited on the search for possible causes of biodiversity erosion. Research on the...

The representation of the individual in economics as a rational homo oeconomicus had been seriously questioned by the development of behavioural economics. Some authors nevertheless argue that economists do not need to produce complex models of human behaviour, since such investigation does not...

In this article, we focus on two types of "aversion" which we deem essential aspects of the notion of trust: betrayal aversion (social) and ambiguity aversion (a special case of aversion to uncertainty). Based on trust-games studies in experimental economics and neuroeconomics, our main goal is...

Neuroeconomics is a recent extension of behavioral economics which aims at uncovering the brain mechanisms and activities that mediate regular and anomalous behaviour. Gul and Pesendorfer (2005) have launched a critique against the neuroeconomic research program, based on what they argue is the...

Neuroeconomics is an emerging field crossing neuroscientific data, the use of brain-imaging tools, experimental and behavioral economics, and an attempt at a better understanding of the cognitive assumptions that underlie theoretical predictive economic models. In this paper the authors try two...