The 2016 Nobel Memorial Prize in Economic Sciences was awarded to Oliver Hart and Bengt Holmström for their work on contract theory. Contract theory is a subfield of game theory where the conflict between the owner - the principal - and the CEO - or agent - is at the centre of interest. In the...

The 2016 Nobel Memorial Prize in Economic Sciences was awarded to Oliver Hart and Bengt Holmström for their work on contract theory. Contract theory is a subfield of game theory where the conflict between the owner - the principal - and the CEO - or agent - is at the centre of interest. In the...

The most fundamental form of systemic risk in modern financial networks is contagion. In this article we describe a homogeneous banking system (banks with identical preferences and the same size of total assets) with interconnectedness: banks own shares in each others' assets. Using these...

Game theory is the pocket knife of conflict modelling: it has tools, models for practically all strategic conflicts, be that two- or multiplayer, complete or incomplete information and so on. In this study we have collected relevant tools for young lawyers. Since this is an introductory text we...

Game theory is the pocket knife of conflict modelling: it has tools, models for practically all strategic conflicts, be that two- or multiplayer, complete or incomplete information and so on. In this study we have collected relevant tools for young lawyers. Since this is an introductory text we...

The most fundamental form of systemic risk in modern financial networks is contagion. In this article we describe a homogeneous banking system (banks with identical preferences and the same size of total assets) with interconnectedness: banks own shares in each others' assets. Using these...

This survey reviews the economic thoughts about what and why do institutional market players lose because of the existing market frictions and particular financial market microstructures compared to walrasian markets. Within a unified microeconomic framework, we introduce the most common...

This survey reviews the economic thoughts about what and why do institutional market players lose because of the existing market frictions and particular financial market microstructures compared to walrasian markets. Within a unified microeconomic framework, we introduce the most common...

Economic decisions have been shown to depend on actual outcomes as well as perceived intentions. In this paper, we examine whether and how the relative importance of outcomes or intentions for economic decision develops with age. We report the result of ultimatum games with children, teens and...

Using the 2004 income survey of the Hungarian Central Statistical Office we consider the targeting of two types of unemployment-related benefits: a) unemployment insurance and re-training benefits and b) the unemloyment assistance (UA). The evidence suggests that unemployment-related benefits...