Showing 1 - 10 of 57
That historical inequality can affect long run macroeconomic performance has been argued by a large literature on ‘endogenous inequality’ using models of indivisibilities in occupational choice, in the presence of borrowing constraints. These models are characterized by a continuum of steady...
Persistent link: https://www.econbiz.de/10005537235
Persistent link: https://www.econbiz.de/10010987295
We investigate experimentally whether collective choice matters for individual attitudes to ambiguity. We consider a two-urn Ellsberg experiment: one urn offers a 45% chance of winning a fixed monetary prize, the other an ambiguous chance. Participants choose either individually or in groups of...
Persistent link: https://www.econbiz.de/10010887075
Members of a shareholder meeting or legislative committee have greater or smaller voting power than meets the eye if the nucleolus of the induced majority game differs from the voting weight distribution. We establish a new sufficient condition for the weight and power distributions to be equal,...
Persistent link: https://www.econbiz.de/10010906372
Power index research has been a very active field in the last decades. Will this continue or are all the important questions solved? We argue that there are still many opportunities to conduct useful research with and on power indices. Positive and normative questions keep calling for...
Persistent link: https://www.econbiz.de/10011272591
We introduce the prediction value (PV) as a measure of players’ informational importance in probabilistic TU games. The latter combine a standard TU game and a probability distribution over the set of coalitions. Player i’s prediction value equals the difference between the conditional...
Persistent link: https://www.econbiz.de/10011256041
Economists usually treat human behavior as being determined by the shadow of the future, while most other social scientists point to the shadow of the past. This paper considers experimental evidence relevant to the controversy and tries to reconcile both explanations of human behavior with each...
Persistent link: https://www.econbiz.de/10005252200
Persistent link: https://www.econbiz.de/10005369286
This paper examines steady states of an overlapping generations economy with a given distribution of household locations over a one-dimensional interval. Parents decide whether or not to educate their children. The model therefore combines local social interaction with global market interaction....
Persistent link: https://www.econbiz.de/10005341735
Imposing a minimum quality standard (MQS) is conventionally regarded as harmful if firms compete in quantities. This, however, ignores dynamic effects. We show that an MQS can hinder collusion, resulting in dynamic welfare gains that reduce and may even outweigh the usual static losses. Verdicts...
Persistent link: https://www.econbiz.de/10005342841