I characterize backward induction in an epistemic model of perfect information games where players have common certain belief of the consistency of preferences rather than the rationality of choice. In this approach, backward induction corresponds to common certain belief of ‘belief in each...

We consider a model where TV channels transmit advertising, and viewers dislike such commercials. We find that the less differentiated the TV channels’ programs are, the lower is the amount of advertising in equilibrium. Relative to the social optimum, there is underprovision of advertising if...

Known results on the identification of structural duration dependence in the presence of unobserved heterogeneity depend crucially on the proportional hazards assumption. Here, I show that variation in covariates over time, combined with variation across observations, is sufficient to ensure...

In this paper, we consider the formulation and estimation of systems of regression equations with random individual effects in the intercept terms from unbalanced panel data, i.e., panel data where the individual time series have unequal length. Generalized Least Squares (GLS) estimation and...

We consider the effects of vertical integration on the performance of long-term and spot markets when spot prices are uncertain and agents are risk averse. We find that vertical integration impairs market performance by increasing the gap between contract and (expected) spot prices. This holds...

As is known from the economic literature, the notion of negative/positive duration dependence defined in terms of a decreasing/increasing hazard function can solely be used as a basis for revealing whether negative/positive duration dependence is present or not. However, when concern is directed...

We investigate how transitions from unemployment are affected by economic incentives and spell duration. Based on unique Norwegian register data that exhibit the rarity of random-assignment-like variation in economic incentives, the causal parameters are identified without reliance on...

This paper summarizes assumptions made and results obtained in parts of the literature on welfare and sustainability accounting. I consider five di®erent assumptions that can be imposed independently of each other, producing 32 different combinations. This taxonomy is used to organize results...

According to recent literature on monetary policy, there are two different interpretations of inflation targeting; (1) an instrument rule that responds to a measure of inflation (forecast) deviations from target and (2) a discretionary optimizing strategy towards minimizing the inflation...