Consider a real-valued function that, on a convex subset of a real vector space, is continuous on line segments and has convex contour sets. Inspired by a compelling intuitive argument due to Aumann (1975), we provide a simple proof that no strictly increasing transformation of such a function...

Though the various improvements and different measures of many aspects related to well being proposed by the Sarkozy Report will be very useful, an overall national success indicator to supplement/replace the traditional focus on GDP is needed. As an ultimate indicator, it has to be...

We uncover a new necessary condition for implementation in iteratively undominated strategies by mechanisms that satisfy the “best element property” where for each agent, there exists a strategy profile that gives him the highest payoff in the mechanism. This class includes finite and...

We propose a two-market heterogeneous agents model with coupling mechanism to study Financial crisis with contagion effect. It manages to calibrate sudden crash behavior of US and UK stock markets during "Black Monday" of 1987 besides smooth crisis and disturbing crisis categorized in...

Despite recent intense interest, happiness studies have been impeded by some conceptual and methodological problems, including viewing happiness (well-being/welfare) as different over different persons, as relative, multi-dimensional, non-cardinally measurable, interpersonally noncomparable and...

Implementation in iteratively undominated strategies relies on permissive conditions. However, for the sufficiency results available, authors have relied on assumptions that amount to quasilinear preferences on a numeraire. We uncover a new necessary condition that implies that such assumptions...

We comment on the relation between models of information based on signals/partitions, and those based on sigma-algebras. We show that more informative signals need not generate finer sigma-algebras, hence that Blackwell's theorem fails if information is modeled as sigma-algebras. The reason is...