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We study a classic mechanism design problem: How to organize trade between two privately informed parties. We characterize an optimal mechanism under selfish preferences and present experimental evidence that, under such a mechanism, a non-negligible fraction of individuals deviates from the...
Persistent link: https://www.econbiz.de/10013055380
Despite the fact that many aggregates are nonlinear functions and the aggregation weights of many macroeconomic …, time-invariant aggregation weights. In this study a framework for nonlinear contemporaneous aggregation with possibly …
Persistent link: https://www.econbiz.de/10013144208
cheating in the lab generalizes to the field. We conducted an experiment with middle and high school students to test whether a …
Persistent link: https://www.econbiz.de/10012970422
the idea that direct competition damages social ties and the more general notion of state-dependent preferences …
Persistent link: https://www.econbiz.de/10012970051
unilaterally, but faces competition from a political opponent in the future. Both parties care about voters payoffs, but they have … endogenously influence whether learning occurs through its policy choices (policy experimentation), future political competition … that all incumbents can find it optimal to ‘over experiment', relative to a counter-factual in which they are sure to be in …
Persistent link: https://www.econbiz.de/10013051379
in an experiment. Our data show that indeed, strengthening weaker contestants through tie-breaks and bid …
Persistent link: https://www.econbiz.de/10012986649
trust and trustworthiness in anonymous transactions. Market competition creates incentives that arguably may enhance or curb … the effectiveness of these systems. We investigate how different forms of market competition and social reputation … networks interact in a series of laboratory online markets, where sellers face a moral hazard. We find that competition in …
Persistent link: https://www.econbiz.de/10012751561
This paper investigates how group membership and competition among trustors interact with trust and trustworthiness in … competition leads to a decrease in trustworthiness, especially among partners. We argue that once competition comes into play …
Persistent link: https://www.econbiz.de/10013316267
The Mirrleesian model of income taxation restricts attention to simple allocation mechanism with no strategic interdependence, i.e., the optimal labor supply of any one individual does not depend on the labor supply of others. It has been argued by Piketty (1993) that this restriction is...
Persistent link: https://www.econbiz.de/10013138236
This paper characterizes when the one-stage deviation IC constraints in the usual sense of dynamic mechanism design are sufficient. One can easily construct examples of when they are not sufficient. If the current state or the belief is not a sufficient summary statics of the agent's private...
Persistent link: https://www.econbiz.de/10012901080