The issue of the order dependence of iterative deletion procedures is well known in the game theory community, and conditions on the dominance concept underlying these procedures have meanwhile been detected which ensure order independence (see, e.g., the criteria of Gilboa et al. (1990) and Apt...

An economy consists of many duopolistic markets. Firms must earn normal profits in the long run if they are to survive. Normal profits are interpreted as the long-run limit of average profits in the whole economy. We adopt the aspiration based model of firm behaviour, and link it to the economy...

When Argentine sovereign default in December 2001 led to a collapse of the peso, the burden of dollar debt became demonstrably unsustainable. But it was not clear what restructuring was feasible, nor when. Eventually, in 2005 after a delay of more than three years, a supermajority of creditors...

We report on several experiments on the optimal allocation of ownership rights. The experiments confirm the property rights approach by showing that the ownership structure affects relationship-specific investments and that subjects attain the most efficient ownership allocation despite starting...

Risk aversion is one of the most commonly cited properties of human decision making (e.g., Kahneman & Tversky, 1979). This finding is at odds with traditional expected value theory, but not with more recent theories of rational choice (e.g., von Neumann & Morgenstern, 1944). Since Bernoulli?s...