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Is population growth conducive to the sustainability of cooperation? Oded Stark and Marcin Jakubek

Stark, Oded; Jakubek, Marcin - 2011

This paper asks whether population growth is conducive to the sustainability of cooperation. A simple model is developed in which farmers who live around a circular lake engage in trade with their adjacent neighbors. The payoffs from this activity are governed by a prisoner's dilemma "rule of...

Persistent link: https://www.econbiz.de/10009238658

Intellectual Property Rights, Innovation and Healthcare : Unanswered Questions in Theory and Policy

Srinivas, Smita - 2014

Intellectual property regimes are usually presumed to exert positive inducements on technological innovation. However, given the dire nature of access to critical health technologies for most of the world's population, it is worth revisiting this assumption for health technologies. This paper...

Persistent link: https://www.econbiz.de/10012751579

Inattentive Inference

Graeber, Thomas - 2020

This paper studies how people make inference about a state of the world when the information structure includes additional, payoff-irrelevant states. For example, learning about effort from observed performance may require accounting for the otherwise irrelevant role of luck. This creates an...

Persistent link: https://www.econbiz.de/10012827647

Can Probability Theory Deal with Entrepreneurship?

Tarko, Vlad - 2017

The Austrian theory of entrepreneurship emphasizes the importance of epistemic heterogeneity and the unlistability of … as an unrealistic and unnecessary restriction. This coincidence of concerns leads to a joint theory of entrepreneurship …. Three important benefits result from this merger: (1) the ability to use Itti & Baldi's Bayesian theory of surprise to …

Persistent link: https://www.econbiz.de/10012974904

A Robust Resolution of Newcomb's Paradox

Weber, Thomas A. - 2016

Newcomb's problem is viewed as a dynamic game with an agent and a superior being as players. Depending on whether or not a risk-neutral agent's confidence in the superior being, as measured by a subjective probability assigned to the move order, exceeds a threshold or not, one obtains the...

Persistent link: https://www.econbiz.de/10013007228

Economic Coordination in Environments with Incomplete Pricing

Aligica, Paul Dragos - 2015

Simple observation presents two stylized facts that call for integration into a single explanatory framework. One fact is that societies reflect generally though certainly not perfectly coordinated patterns of activity. The other fact is that only a subset of those activities is coordinated with...

Persistent link: https://www.econbiz.de/10013012548

Regarding the Use of Knowledge in Political Economy : Paretian Insight into a Hayekian Challenge

Wagner, Richard E. - 2016

Friedrich Hayek (1937, 1945) explained that scholars engage in fantasy when they presume that they, or anyone for that matter, presume to possess the knowledge necessary to construct some societal equilibrium. That knowledge is incapable of being possessed by a single mind, which means that the...

Persistent link: https://www.econbiz.de/10012992722

Optimal Financial Knowledge and Wealth Inequality

Lusardi, Annamaria - 2015

Using a stochastic life cycle model with endogenous financial knowledge accumulation, we show that financial knowledge is a key determinant of wealth inequality. The mechanism we posit is that financial knowledge enables individuals to better allocate re- sources over their lifetimes in a world...

Persistent link: https://www.econbiz.de/10013025532

Foundations of ambiguity models under symmetry : α-MEU and smooth ambiguity

Klibanoff, Peter; Mukerji, Sujoy; Seo, Kyoungwon; … - 2021 - This Version: January 13, 2021

The α-MEU model and the smooth ambiguity model are two popular models in decision making under ambiguity. However, the axiomatic foundations of these two models are not completely understood. We provide axiomatic foundations of these models in a symmetric setting with a product state space...

Persistent link: https://www.econbiz.de/10012422419

Belief Updating and the Demand for Information

Ambuehl, Sandro - 2019

How do individuals value noisy information that guides economic decisions? In our laboratory experiment, we find that …

Persistent link: https://www.econbiz.de/10012904826