This study uses non-stationary econometrics to analyze asymmetry and dominance within the EMS through interest rate linkages between the French franc, the German deutsche mark and the US dollar. High frequency data (daily Eurorates from April 1983 to the end of 1992) are used for their better...

It will be shown that for rational players with a sufficiently large time horizon it is advantageous to keep promises and not to cheat even if cheating is the optimal behaviour in the short run. This explains why ethics could develop in a market economy where incentives to cheat are ubiquitous.

This paper introduces a two-sided methodological framework for   studies on cooperation based on a new game design. Presented games are continuous prisoner's   dilemma games with positive and negative presentations of an identically structured   decision problem. Decision makers can choose an...

Psychological game theory can help provide a rational choice explanation of framing effects; frames influence beliefs, beliefs influence motivations. We explain this theoretically, and explore the empirical relevance experimentally. In a 2×2 design of one-shot public good games we show that...

Psychological game theory can provide rational-choice-based framing effects; frames influence beliefs, beliefs influence motivations. We explain this theoretically and explore empirical relevance experimentally. In a 2×2 design of one-shot public good games we show that frames affect...

We develop an evolutionary model of growth in which agents choose how to allocate their time between private and social activities. We argue that a shift from social to private activities may foster market-based growth, but also generate social poverty. Within a formal framework that merges a...