In this paper we propose a new method to elicit the intensity of individual's risk preferences. Our method uses a simple multiple price-list format and is based on the increasing risk definitions of Rothschild and Stiglitz (1970, 1971). We are thus able to classify individuals as more or less...

Using individual-level panel data from European Union Statistics on Income and Living Conditions (2007-2010) we explore to what extend wage differentials across European countries are explained by differences in education, actual experience and health. The human capital literature suggests an...

This paper analyzes intertemporal effort provision in two-stage tournaments. A principal with a fixed budget for prizes faces two risk-neutral agents. He observes noisy signals of effort in both periods. His goal is to maximize either total efforts (perfect substitutes) or the product of first-...

This paper analyzes the evolution of wage inequality and wage mobility separately for men and women in West and East Germany over the last four decades. Using a large administrative data set which covers the years 1975 to 2008, I find that wage inequality increased and wage mobility decreased...

This paper presents a class of finite n x n bimatrix (2-player) games we coin Circulant Games. In Circulant Games, each player's payoff matrix is a circulant matrix, i.e.\ each row vector is rotated one element relative to the preceding row vector. We show that when the payoffs in the first row...

Reputation formation pervades human social life. In fact, many people go to great lengths to acquire a good reputation, although building a good reputation is costly in many cases. We know little, however, about the neural underpinnings of this important social mechanism. In the present study we...

We propose and axiomatically characterize a representation of ambiguity sensitive preferences. The distinguishing feature of our axiomatization is that we do not require preferences to be event-wise separable over any domain of acts. Even without any such separability restrictions, we are able...

We analyze the allocation of talent across teams in large matching markets with competition for rank. We show that under general conditions globalization in the form of a convex transformation of payoffs promotes the concentration of talent, i.e. it makes positive assortative matching more...

Duality in microeconomic theory takes an important role in the theoretical work and in empirical research. The dual description of convex set implies the unique structure of microeconomic phenomena in the consumer and producer theory. In this article the unique structure of microeconomic...