This paper proposes an aspiration-based model for (anonymous) cooperation where a large population of agents are re-matched every period to playa Prisoner's Dilemma. At each point in time, agents hold a certain common aspiration level which is updated on the basis of population-average...

A model of "satisficing" behavior in the repeated Prisoners Dilemma is studied. Each player has an aspiration at each date, and takes an action. [S]he switches from the action played in the previous period only if the achieved payoff fell below the aspiration level (with a probability that...

The implantation of the Euro in the eleven of the EU has driven the big banks to expand their presence in other European countries, which may have negative consequences on their credit risk in view of the disadvantages involved in entering new markets. The aim of this paper is to analyse the...

This paper presents a model in which players interact via the formation of costly links and the benefits of bilateral interactions are determined by a coordination game. A novel contribution of this paper is that the fraction of the cost borne by each player involved in a bilateral link is not...

Here I provide a model that gives some insights regarding questions about actual economic behavior. I take as a source for stylized facts the experiments conducted by Marimón and Sunder as reported in Econometrica, 1993, in which it is shown that people initially do not behave according to the...

The objective of this study is to analyze the macroeconomic performance of 16 Ibero- American countries over the period 1980- 199 1. Macroeconomic performance is defined as the ability of a country's macroeconomic managers to provide four welfare-enhancing economic services to their citizens: a...

Suppose that a group of individuals owns collectively a technology which produces a consumptiongood by means of a (possibly heterogeneous) input. A sharing rule associates input contributionswith a vector of consumptions that are technologically feasible. We show that the set of...

We characterize the incentive compatible allocation that maximizes the expected social surplus in a single-unit sale when the efficient allocation is not implementable. This allocation may involve no selling when it is efficient to sell. We then show that the English auction always implements...

This paper develops a two-sector model for a renewable natural resource based economy. Pareto efficient results show the optimal harvesting rate that allows for sustained long-run optimal growth, which is upper-bounded by the biological rate of reproduction. Regulation prevents from resource...

Let µ be a rational distribution over a finite alphabet, and ( ) be a n-periodic sequences which first n elements are drawn i.i.d. according to µ. We consider automata of bounded size that input and output at stage t. We prove the existence of a constant C such that, whenever , with...