The following analysis demonstrates that network efficiency is a very delicate matter. Neither the restriction to suitable core-subnets, nor intelligent enlargements guarantee efficient results in any case. For instance, the numerical example in Myerson (1977) contains a prisoners’ dilemma...

We study the computations that Bayesian agents undertake when exchanging opinions over a network. The agents act repeatedly on their private information and take myopic actions that maximize their expected utility according to a fully rational posterior belief. We show that such computations are...

Using proprietary geocoded data from the Panel Study of Income Dynamics, I examine whether local racial integration influences financial decision-making. I find that individuals residing in racially integrated communities are more likely to invest in public equity markets after accounting for...

Trait-based personality psychology and economics have taken different approaches to understanding individual differences, with the former emphasizing variables derived from the factor analysis of trait assessments, and the latter emphasizing variables derived from formal decision theory. In a...

This paper examines the effect of interactions between heterogeneous decision-makers on an agent's information revelation incentives. We analyze a cheap-talk game between an informed agent and two uninformed decision-makers who coordinate their actions. We compare public communication with...

The use of coarse categories is prevalent in various situations and has been linked to biased economic outcomes, ranging from discrimination against minorities to empirical anomalies in financial markets. In this paper we study economic rationales for categorizing coarsely. We think of the way...

Trait-based personality psychology and economics have taken different approaches to understanding individual differences, with the former emphasizing variables derived from the factor analysis of trait assessments, and the latter emphasizing variables derived from formal decision theory. In a...

Strategic decisions are affected by beliefs about the expectations of others and their possible decisions. Thus, strategic decisions are influenced by the social context and by beliefs about other actors’ levels of sophistication. The present study investigated whether strategic...

We study a model of strategic persuasion based on the theory of cheap talk, in which a better-informed agent manipulates two decision-makers' joint decision on alternative proposals. With the heterogeneity of two decision-makers' value of the outside option, only the decision-maker with the...

We propose a framework in order to econometrically estimate case-based learning and apply it to empirical data from twelve 2 × 2 mixed strategy equilibria experiments. Case-based learning allows agents to explicitly incorporate information available to the experimental subjects in a simple,...