In many strategic environments, information acquisition is a central component of the game that is played. Being uncertain about a payoff-relevant state, a player in a game has a two-fold incentive to acquire information: learning the state and learning what others know. We develop a model of...

The paper proposes a novel way to handle the relation between decision theory and uncertainty in the context of policy design. Present risk governance is based primarily on two institutions - insurance markets and public risk governance - supported by a powerful theory: the expected utility...

Geopolitische Verunsicherungen belasten die Weltwirtschaft und die exportorientierten Unternehmen in Deutschland. Das Ausmaß an wirtschaftlicher Verunsicherung kann nicht direkt gemessen werden. Neben Finanzmarktindikatoren und Medienanalysen können auch Unternehmensbefragungen wichtige...

Epidemics tend to have a debilitating influence on the lives of directly afflicted families. However, the presence of an epidemic can also change the behaviour and outcomes of those not directly affected. This paper makes use of a short, sharp, unexpected epidemic to examine the behavioural...

We obtain rich measurements of risk preferences for 2939 subjects across 30 countries, and use the data to paint a picture of the distribution of risk preferences across the globe using structural equation models. Reference-dependence and likelihood-dependence are found to be important...

Successful development of electronic banking is in direct correlation with the quality of services in electronic banking. Therefore, it is necessary that the banks are familiar with the attributes of electronic services on which clients assess the bank’s quality and client’s satisfaction...

This paper studies a two-person trading game in continuous time that generalizes Garivaltis (2018) to allow for stock prices that both jump and diffuse. Analogous to Bell and Cover (1988) in discrete time, the players start by choosing fair randomizations of the initial dollar, by exchanging it...

The great recession (2008) triggered an apparent discrepancy between empirical findings and macroeconomic models based on rational expectations alone. This gap led to a series of recent developments of a behavioral microfoundation of macroeconomics combined with the underlying experimental and...

To study coordination in complex social systems such as financial markets, the authors introduce a new prediction market set-up that accounts for fundamental uncertainty. Nonetheless, the market is designed so that its total value is known, and thus its rationality can be evaluated. In two...

We study dynamic contracting with adverse selection and limited commitment. A firm (the principal) and a worker (the agent) interact for potentially infinitely many periods. The worker is privately informed about his productivity and the firm can only commit to short-term contracts. The ratchet...