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Global games of regime change – coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it – have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We extend...
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The evolution of large-scale cooperation among genetic strangers is a fundamental unanswered question in the social sciences. Behavioral economics has persuasively shown that so called "strong reciprocity" plays a key role in accounting for the endogenous enforcement of cooperation. Insofar as...
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We apply a fallback model of coalition formation to decisions of the U.S. Supreme Court, focusing on the seven natural courts, which had the same members for at least two terms, between 1969 and 2009. The predictions of majority coalitions on each of the courts are generally bourn out by the 5-4...
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we label the irreversibility premium. Estimates are based on panel data for the period 1980-2001. The large dataset …-wide shocks on the irreversibility premium. Our estimates provide a readily interpretable measure of the importance of … irreversibility and document that the irreversibility premium is both economically and statistically significant. …
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