A decision maker (DM) wishes to select a competent candidate to …ll a position.However, since the wage and task of the position is predetermined, the DM cannot usecontract as a screening device. This paper formulates the problem as a class of selectionproblem and derives the optimal selection...

Candidates compete to persuade a decision maker. The decision maker wishes toselect a candidate who possesses a certain ability. Then, as a signaling, each candidatedecides whether to perform a task whose performance statistically re‡ects the ability.However, since the cost of the performance...

Agents compete to solve a problem. Each agent knows own computational capacityas private information and simultaneously chooses either a risky or a safe problemsolving method. This paper analyzes the optimal prize schemes from the perspectiveof the prize designer who wishes to …nd a solution as...

The probability that actors in economic relationships break rules increases with the profits they thus expect to earn. It decreases with the probability and level of short - and long-term losses resulting from disclosure. It also decreases with the level of social context factors and intrinsic...

This paper examines the occurrence and fragility of information cascades in laboratory experiments.One group of low informed subjects make predictions in sequence. In a matchedpairs design, another set of high informed subjects observe the decisions of the first group andmake predictions....

The common prior assumption justifies private beliefs as posterior probabilities when updatinga common prior based on individual information. Common priors are pervasive in most economicmodels of incomplete information and oligopoly models with asymmetrically informed firms. Wedispose of the...

Theory absorption, a notion introduced by Morgenstern and Schwödiauer (1972)and further elaborated by Güth and Kliemt (2004), discusses the problem whether atheory can survive its own acceptance. Whereas this holds for strategic equilibria accordingto the assumptions on which they are based,...

We study the value of information in financial markets by asking whether having more information always leads to higher returns. We address this question in an experiment where single traders have different information levels about an asset’s intrinsic value. In our treatments we vary the...

In the Yes/No game, like in the ultimatum game, proposer and respondercan share a monetary reward. In both games the proposer suggests a rewarddistribution which the responder can accept or reject (yielding 0-payoffs). Thegames only differ in that the responder does (not) learn the suggested...

Im Internet ist eine Vielzahl von Informationen vorhanden, welche zum Treffenvon Kaufentscheidungen herangezogen werden können. Da Anbieter abermeist besser informiert sind als Nachfrager entstehen so genannte Informationsasymmetrien.Um sich auf Märkten einen besseren Überblick über das...