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We consider the role of asymmetric information on the emergenceof collusion between criminals and enforcers, in the framework proposed by Bowles and Garoupa (1997) and Polinsky and Shavell (2001). Our paper proposes that the optimal criminal sanction for the underlying o®ense is not necessarily...
Persistent link: https://www.econbiz.de/10011257930
We analyze the tax evasion problem with social interaction among the taxpayers. If the authority commits to a fixed auditing probability, a positive share of cheating is obtained in equilibrium. This stands in contrast to the existing literature, which yields full compliance of audited taxpayers...
Persistent link: https://www.econbiz.de/10005260229
We show that the probability of apprehension and punishment is usually reduced in a framework with asymmetric information, leading to more offenses being committed. A positive correlation between crime and asymmetry of information in the enforcement process is established. Some suggestions...
Persistent link: https://www.econbiz.de/10011113598
Exploration is a costly activity that helps a business improve their understanding of a potential mineral deposit. Yet, even with strong exploration results, the business faces uncertainty over the value of the mine. I model this situation as a game of chance. The game starts by giving an agent...
Persistent link: https://www.econbiz.de/10011274395
Using data from a randomized experiment in rural China, this paper studies the influence of social networks on weather insurance adoption and the mechanisms through which social networks operate. To quantify network effects, the experiment offers intensive information sessions about the...
Persistent link: https://www.econbiz.de/10011258983
different cognitive abilities learn differently, we estimate a structural model of learning based on level-k reasoning. We find …
Persistent link: https://www.econbiz.de/10011259076
Cycle models. To our knowledge this thesis is the first attempt to formally introduce adaptive learning and expectation … various econometric adaptive learning tools: Auto ARIMA, VAR and AR(2) models. In all simulations, output and other economic … obtained in simulations with Auto ARIMA models, while the VAR learning tool leads to diverging fluctuations in the majority of …
Persistent link: https://www.econbiz.de/10011259238
news), whether learning performance is better or worse when people are actively investing in a security or passively … observing the security’s payoffs, and whether there are personal characteristics that correlate with learning performance. The …. Within individual, learning from gains versus losses, or during active versus passive involvement, are not perfectly …
Persistent link: https://www.econbiz.de/10011260470
We describe a candid model for learning, why and how learning transpires. We investigate the original as well as the … leading conditions of the learning process. We provide an insight into the realm of beliefs and their formation, their … the influence that learning in general has on human behavior. …
Persistent link: https://www.econbiz.de/10005015595
economic development. Knowledge-based economies are founded on increasing specialization, research, innovation and learning …
Persistent link: https://www.econbiz.de/10009652951