This paper uses an equilibrium matching framework to study jointly the optimal private provision of severance pay and the allocational and welfare consequences of government intervention in excess of private arrangements. Firms insure riskaverse workers by means of simple explicit employment...

This paper shows that Rubinstein’s results on the two-player electronic mail game do not extend to the N-player electronic mail game.

This paper explores the underlying factors which explain the diversity in public opinion of EU citizens on the preferred way of financing pensions and the implications for international policy coordination. We find that preferences are mainly determined by the current pension provision and...

Boone (2008) introduces a new theory based measure of competition, the so-called Boone-indicator. The indicator is based on the relationship between performance, in terms of profits, and efficiency, measured as marginal costs. Whether the indicator is able to correctly measure competition in...

We use experimental evidence from a complex trading environment to evaluate the rational expectations theory of information acquisition in an asset market. Although theoretical predictions correctly identify the main drivers of information acquisition in our experimental data, we observe much...

In this Discussion Paper we analyse how Europe’s ICT ambition can be translated into a policy agenda. To achieve this, we provide a quantitative overview of the importance of ICT and the relative position of Europe versus the US. Next we provide a discussion of potential explanations for...

We revisit and test Salop and Stiglitz (1982) Theory of Sales. Equilibrium predictions are that higher consumer storage costs lead to: (1) higher average prices, (2) fewer promotions, and (3) shallower promotions. Empirical estimates of storage cost are developed for approximately 1,000...

This article contains a clinical study of Bekaert NV, the biggest insider trading case inBelgium. Up to now, no economic analysis of this case was ever conducted. It showed thatBelgian courts currently seem to lack knowledge of the functioning of financial markets toassess an insider trading...

Abstract We analyse empirically price-setting in the Dutch mortgage market, using information on about 124,000 Dutch households and 54 mortgage lenders over the years 1996-2001. For a narrowly defined set of mortgages (which have a fixed lending rate for ten years), the range of the lending rate...

This study shows that the effects of judgment proofness on precaution depend on whether the injurer can reduce the probability of the accident, the magnitude of the harm, or both. Different legal solutions to the problem are examined: punitive damages, average compensation, undercompensation,...