This paper studies the potential commitment value of cheap talk announcements in an agent-based dynamic extension of the Kydland-Prescott model. In every period, the policy maker makes a non-binding inflation announcement before setting the actual inflation rate. It updates its decisions using...

This paper studies the potential commitment value of cheap talkinflation announcements in an agent-based dynamic extension of theKydland-Prescott model. In every period, the policy maker makesa non-binding inflation announcement before setting the actualinflation rate. It updates its decisions...

In this paper we explore the role of social influence for the coordination of effort choice in a game with strategic complementarities. Players are repeatedly randomly partitioned in groups to play a minimum effort game and choose their effort based on their beliefs about the minimal effort...

Chapter 1 “Introduction” by Herbert Dawid and Jasmina Arifovic -- Chapter 2. “Cross-bidding in eBay-like Environments” by Francisco Alvarez and Marcello Sartarelli -- Chapter 3. “Risk–Reward Ratio Optimisation (Revisited)” by Manfred Gilli and Enrico Schumann -- Chapter 4....

This book analyses decision-making in dynamic economic environments. By applying a wide range of methodological approaches, combining both analytical and computational methods, the contributors examine various aspects of optimal firm behaviour and relevant policy areas. Topics covered include...