This paper shows that, for CEU preferences, the axioms consquentialism, state independenceand conditional certainty equivalent consistency under updating characterise a family of capacities,called Genralised Neo-Additive Capacities (GNAC). This family contains as special casesamong others...

This paper experimentally investigates whether risk-averseindividuals punish less if the outcome of punishment is uncertain thanwhen it is certain. Our design includes three treatments: Baseline inwhich the one-shot prisoner’s dilemma game is played; CertainPunishment in which the prisoner’s...

This paper develops a general equilibrium model to measure welfare eects of taxesfor correcting environmental externalities caused by domestic trade, focusing on externalities that arise through exports. Externalities from exports come from a number ofsources. Domestically owned ships, planes,...

This paper develops a new open-economy endogenous growth modelwhere technology diffusion allows for a stable and non-degenerate world incomedistribution. In accordance with the empirical literature, I find that country characteristicssuch as the social infrastructure, the degree of openness, the...

This paper studies whether menu costs are large enough to explain why …rms are soreluctant to change their prices. Without actually estimating menu costs, we can infertheir relevance for …firrms' price setting decisions from observed pricing behavior arounda currency changeover. At a currency...

Sick pay is a common provision in most labor contracts. This paperemploys an experimental gift-exchange environment to explore two relatedquestions using both managers and undergraduates as subjects.First, do workers reciprocate generous sick pay with higher effort? Second,do firms benefit from...

How does the environment of an organization inuence whether workersvoluntarily provide eort? We study the power relationship betweena non-prot unit (e.g. university department, NGO, healthtrust), where workers care about the result of their work, and a bu-reaucrat, who supplies some input to the...

Least-Unmatched Price Auctions have become a popular format of TV and radio shows. Increasingly,they are also applied in internet trading. In these auctions the lowest single (unique)bid wins. We analyze the game-theoretic solution of least unmatched price auctions when prize,bidding cost and...

In this paper, we consider a decision-maker who tries to learn the distribution ofoutcomes from previously observed cases. For each observed sequence of casesthe decision-maker predicts a set of priors expressing his beliefs about the underlyingprobability distribution. We impose a version of...