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We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form beliefs on the average propensity to trade of the other...
Persistent link: https://www.econbiz.de/10008925606
This paper aims to show that the market selection hypothesis in finance is not solely driven by the competitiveness of such markets, as was originally claimed by Alchian [1] and Friedman [4]. Within a standard intertemporal General Equilibrium framework, we allow for an agent to have enough...
Persistent link: https://www.econbiz.de/10005760924
I construct a theory of cultural transmission in which culture acquisition takes place in two stages, first in the family where parents transmit their own culture, and later in society where children are exposed to a wider set of cultural models. The role of models is to provide information...
Persistent link: https://www.econbiz.de/10008568451
We consider an economy where decision maker(s) do not know the true production function for a public good. By using Bayes rule they can learn from experience. We show that the economy may learn the truth, but that it may also converge to an inefficient policy where no further inference is...
Persistent link: https://www.econbiz.de/10005585619
’ payoffs. In a laboratory experiment we investigate whether players (a) learn the game they are playing, (b) learn to predict … show that the success in learning the opponent’s type depends on the characteristics of the true game. The learning success … equilibrium and we observe no correlation between equilibrium play and learning about the game. …
Persistent link: https://www.econbiz.de/10005184880
Distortions in memory impose important bounds on rationality but have been largely disregarded in economics. While it …
Persistent link: https://www.econbiz.de/10005184893
This paper extends the convergence result on Bayesian learning in Kalai and Lehrer (1993a, 1993b) to a class of games …
Persistent link: https://www.econbiz.de/10005627896
In economics there is presently an almost revolutionary development. The direct measurement of subjective welfare … challenges traditional economics, inspires it, and opens new avenues for scientific research. The approaches and possibilities of … suggests a comparative institutional analysis of subjective well-being. The happiness revolution in economics is only at its …
Persistent link: https://www.econbiz.de/10004979381
happiness research is able to contribute important insights for economics. We report how the economic variables income …
Persistent link: https://www.econbiz.de/10005760911
well as a broader knowledge of general economics. Some of the results can be compared to Colander (2008). The results … indicate that graduate programs noted for their American style greatly influence a student’s opinion as to what attributes a …
Persistent link: https://www.econbiz.de/10008477153