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obtained in a complete information setting, where coordination is easy, to those obtained in a setting with strategic risk … deterrent effect under complete information, this does not hold anymore under strategic risk. Rather, we find that increases in … weapon stocks can have a non-monotonic effect on the sustainability of peace. We also show that under strategic risk …
Persistent link: https://www.econbiz.de/10012464685
discrete interdependent risks with heterogeneous agents. There is a threat of an event that can only happen once, and the risk … depends on actions taken by others. Any agent's incentive to invest in managing the risk depends on the actions of others …. Security problems at airlines and in computer networks come into this category, as do problems of risk management in …
Persistent link: https://www.econbiz.de/10012468812
In a model with multiple Pareto-ranked equilibria we add trade in assets that pay based on the realization of a sunspot. Asset trading restricts the equilibrium set in a way that raises welfare by eliminating equilibria with a high likelihood of disasters. When the probability of a disaster is...
Persistent link: https://www.econbiz.de/10012457853
This paper evaluates the prospects for the emerging field of neuroeconomics to shed light on traditional positive and normative economic questions. It argues that the potential for meaningful contributions, though often misunderstood and frequently overstated, is nevertheless present
Persistent link: https://www.econbiz.de/10012464693
A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is partially motivated...
Persistent link: https://www.econbiz.de/10012458766
We investigate the feasibility of inferring the choices people would make (if given the opportunity) based on their neural responses to the pertinent prospects when they are not engaged in actual decision making. The ability to make such inferences is of potential value when choice data are...
Persistent link: https://www.econbiz.de/10012459390
Rapid progress has been made in identifying links between human genetic variation and social and behavioral phenotypes. Applications in mainstream economics are beginning to emerge. This review aims to provide the background needed to bring the interested economist to the frontier of...
Persistent link: https://www.econbiz.de/10014544683
Formal analysis plans limit false discoveries by registering and multiplicity adjusting statistical tests. As each registered test reduces power on other tests, researchers prune hypotheses based on prior knowledge, often by combining related indicators into evenly-weighted indices. We propose...
Persistent link: https://www.econbiz.de/10013172142
The analysis of historical natural experiments has profoundly impacted economics research across fields. We trace the development and increasing application of the methodology, both from the perspective of economic historians and from the perspective of economists in other subdisciplines. We...
Persistent link: https://www.econbiz.de/10012479278
How robust are experimental results to changes in design? And can researchers anticipate which changes matter most? We consider a specific context, a real-effort task with multiple behavioral treatments, and examine the stability along six dimensions: (i) pure replication; (ii) demographics;...
Persistent link: https://www.econbiz.de/10012479807