Showing 1 - 10 of 80
The focus of this paper is the endogenous formation of peer groups. In our model agents choose peers before making contributions to public projects, and they differ in how much they value one project relative to another. Thus, the group's preference composition affects the type of contributions...
Persistent link: https://www.econbiz.de/10010815841
In several common-value environments (e.g., auctions or elections), players should make informational inferences from opponents' strategies under certain hypothetical events (e.g., winning the auction or being pivotal). We design a voting experiment that identifies whether subjects make these...
Persistent link: https://www.econbiz.de/10010949143
We provide a generalization of Harsanyi's (1955) aggregation theorem to the case of incomplete preferences at the individual and social level. Individuals and society have possibly incomplete expected utility preferences that are represented by sets of expected utility functions. Under Pareto...
Persistent link: https://www.econbiz.de/10011145209
We study the role of intergroup mobility in the emergence of conflict. Two groups compete for the right to allocate society's resources. We allow for costly intergroup mobility. The winning group offers an allocation, which the opposition can accept or reject, and wage conflict. Agents can also...
Persistent link: https://www.econbiz.de/10011145210
Economists are increasingly interested in how group membership affects individual behavior. The standard method assigns individuals to "minimal" groups, i.e. arbitrary labels, in a lab. But real group often involve social interactions leading to social ties between group members. Our experiments...
Persistent link: https://www.econbiz.de/10010599053
Behavioral economics has shaken the view that individuals have well-defined, consistent and stable preferences. This raises a challenge for welfare economics, which takes as a key postulate that individual preferences should be respected. We argue, in agreement with Bernheim (2009) and Bernheim...
Persistent link: https://www.econbiz.de/10010682860
We consider the spread of a harmful state through a population divided into two groups. Interaction patterns capture the full spectrum of assortativity possibilities. We show that a central planner who aims for eradication optimally either divides equally the resources across groups, or...
Persistent link: https://www.econbiz.de/10010641633
In this paper we analyze a principal's optimal monitoring strategies in a team environment. In doing so we study the interaction between formal monitoring and informal (peer) monitoring. We show that if the technology satisfies complementarity, peer monitoring substitutes for the principal's...
Persistent link: https://www.econbiz.de/10011267821
We consider school competition in a Bayesian persuasion framework. Schools compete to place graduates by investing in education quality and by choosing grading policies. In equilibrium, schools strategically adopt grading policies that do not perfectly reveal graduate ability to evaluators. We...
Persistent link: https://www.econbiz.de/10011267826
This paper addresses the problem of sequentially allocating time sensitive goods, or one-period leases on a durable good, among agents who compete through time and learn about the common component of their valuation privately through experience. I show that efficiency is unattainable, and I...
Persistent link: https://www.econbiz.de/10011267828