Network formation constitutes an important part of many social and economic processes, but relatively little is known about how individuals make their linking decisions. This article provides an experimental investigation of behavioral effects in individual decisions of network formation. Our...

Brams (2003) presents three paradoxes for power indices: some rather counter-intuitive behaviour that is exhibited by both the Shapley-Shubik and the Banzhaf indices. We show that the proportional index is free from such paradoxical behaviour. This result suggests that our intuition may be based...

We present a model of adaptive economic agents that are k periods forward looking. Agents in our model are randomly matched to interact in finitely repeated games. They form beliefs by relying on their past experience in the same situation (after the same recent history) and then best respond to...

The present paper extends the standard model of pairwise communication among Bayesianagents to cases where the structure of the communication protocol is not commonly known.We show that, even under strict conditions on the structure of the protocols and the nature of the transmitted signals, a...

In 2005-2006 is de opzet van de instellingsrapportages voor het hoger onderwijs (HO) in overleg met de HBO-raad, VSNU, hogescholen en universiteiten aangepast om beter aan te sluiten bij het accreditatiekader. Door de nieuwe opzet kunnen hogescholen en universiteiten direct zien welke resultaten...

This paper develops new methods for determining the cointegration rank in a nonstationary fractionally integrated system, extending univariate optimal methods for testing the degree of integration. We propose a simple Wald test based on the singular value decompositionof the unrestricted...

We examine product-games, which are n-player stochastic games satisfying: (1) the state space is a product S(1)×…×S(n); (2) the action space of any player i only depends of the i-th coordinate of the state; (3) the transition probability of moving from s(i) ∈ S(i) to t(i) ∈S(i), on the...

We introduce a new class of bankruptcy problems in which the value of the estate is endogenous and depends on agents'' investment decisions. There are two investment alternatives: investing in a company and becoming a shareholder (risky asset) and depositing money into a savings account...

In this paper we consider the issue of unit root testing in cross-sectionally dependent panels. We consider panels that may be characterized by various forms of cross-sectionaldependence including (but not exclusive to) the popular common factor framework. Weconsider block bootstrap versions of...

While they use the language of game theory known measures of a priory voting power are hardly more than statistical expectations assuming the random behaviour of the players. Focusing on normalised indices we show that rational players would behave differently from the indices predictions and...