In February 1998 the Dutch government auctioned licences to operate mobile telecommunications networks according to the DCS-1800 technology. Two “national” licences and sixteen “regional” ones were auctioned by using a variant of the simultaneous, multiple round auction that was proposed...

Using a simple dynamic consumption-based asset pricing model, this paper explores the implications of a representative investor with smooth ambiguity averse preferences [Klibano¤, Marinacci and Mukerji, Econometrica (2005)] and provides a comparative analysis of risk aversion and ambiguity...

We examine the role of seller bidding and reserve prices in an infinitely repeated independent-private-value (IPV) ascending-price auction.The seller has a single object that she values at zero.At the end of any auction round, she may either sell to the highest bidder or pass-in the object and...

Networks can have an important effect on economic outcomes. Given the complexity of many of these networks, agents will generally not know their structure. We study the sensitivity of game-theoretic predictions to the specification of players’ (common) prior on the network in a setting where...

Nowadays many employers offer their employees the possibility of an insurance against too large losses in income when retiring or becoming disabled. This paper models the optimization problem of the employer when setting up such a so-called pension fund. not surprisingly, it turns out that the...

Networks can have an important effect on economic outcomes. Given the complexity of many of these networks, agents will generally not know their structure. We study the sensitivity of game-theoretical predictions to the specification of players’ (common) prior on the network in a setting where...

Standard game-theoretic solution concepts do not guarantee meaningful commu- nication in cheap-talk games. In this paper, we define a solution concept which guarantees communication for a large class of games by designing a behavior pro- tocol which the receiver uses to judge messages sent by...

The value of information has been the subject of many studies in a strategic context.The central question in these studies is how valuable the information hidden in the chance moves of a game is for one or more of the players.Generally speaking, only the extra possibilities that are beneficial...

We analyze the Spence education game in experimental markets.We compare a signaling and a screening variant, and we analyze the e®ect of increasing the number of employers from two to three.In all treatments, there is a strong tendency to separate.More efficient workers invest more often and...