We study the optimal R&D trajectory in a setting where new technologiesare never perfect backstops in the sense that there is no perfectlyclean technology that eventually solves the pollution problem once andfor all. New technologies have stings attached, i.e. each emits a specificstock...

The interaction between the sea and the economy gives this environment enormous strategic importance. The forms of economic exploitation are diverse and include sectors such as energy, fishing, tourism, transportation, biotechnology, and shipbuilding. For Brazil, country with an extensive...

As the most inhospitable continent on Earth, Antarctica has more than 90% of its territory covered with ice and contains around 70% of all potable water in the world. Its proximity to South America is especially relevant to Brazil, which includes it in the country's strategic surrounding area....

There have been many claims that the Internet represents a nearly frictionless market. This paper extends the empirical results on online retailing by studying prices for nearly homogenous services - holiday packages - matched across conventional and Internet channels. On first sight, lower...

We experimentally explore individual and interactive decision making ina sequential search task and test whether generally accepted principles ofbounded rationality (aspiration formation, satisficing, and aspiration adjustment)adequately explain the observed search behavior. Subjects can, at...

This paper reports two laboratory studies designed to study the impact of public informationabout past departure rates on congestion levels and travel costs. Our experimental design isbased on a discrete version of Arnott, de Palma, and Lindsey’s (1990) bottleneck model wheresubjects have to...

Within the setting of two simple two-person coordinationgames the formation of subjective strategies is observed experimentally.Though the structure of the game is unknown playersuse their actions in order to coordinate on a specific equilibrium.Strategies enable them to interpret the...

Advertisements provide consumers with knowledge about private products, whereas political information is required to provide voters with knowledge of public issues. Modern information technologies and globalization are increasing the exposure of individuals to information. Goods advertising is...

This paper analyzes the time-varying credibility of the Fed's inflation target in an empirical macro model with asymmetric information, where the public has to learn about the actual inflation target from the Fed's interest rate policy. To capture the evolving communication strategy of the Fed,...

Agents with reciprocal preferences prefer to be matched to a partner who also likes to collaborate with them. In this paper, we introduce and formalize reciprocal preferences, apply them to matching markets, and analyze the implications for mechanism design. Formally, the preferences of an agent...