We propose a new model to study the role of commitment as a sourceof strategic bargaining power. Two impatient players bargain aboutthe division of a pie under a standard bargaining protocol indiscrete time with time-invariant recognition probabilities.Instantaneous utility is linear, but...

This paper proposes a new statistical framework originating from the traditional credit-scoring literature, to evaluate currency crises Early Warning Systems (EWS). Based on an assessment of the predictive power of panel logit and Markov frameworks, the panel logit model is outperforming the...

This paper examines whether large U.S. banks have become ''too big to innovate''. We extend the theoretical work of Aghion et al. (2005b) by relaxing their assumption that unit costs are independent from output levels in order to investigate the effect of scale (dis)economies on the...

We study a dynamic pricing problem for a company that sells a single product to a group of customers over a finite time horizon. These customers are price sensitive and the price of today influences the group of customers of tomorrow. The objective is to set the prices over time so as to...

We consider a stochastic scheduling problem which generalizes traditional stochastic scheduling by introducing parameter uncertainty. Two classes of independent jobs have to be processed by a single machine so as to minimize the sum of expected completion times. The processing times of the jobs...

We consider a stochastic scheduling problem in which there is uncertainty about parame-ters of the probability distribution of the processing times. We restrict ourselves to the setting in which there are two different classes of jobs. The processing times of the jobs are assumed to be...

We model a three-pillar pension system and analyse the impact of exogenous shocks on an open economy, using an overlapping generation model where individuals live for two periods. The three-pillar pension system consists of (1) a PAYG pension system, (2) a defined benefits pension fund, and (3)...

The performance of wireless networks suffers from collisions. These occur when multiplewireless nodes transmit simultaneously, and their signals interfere with each other. To reduce collisions, nodes may use a randomized protocol to regulate their behavior. An example of such a protocol is...

Using data on individuals of age 50 and older from 11 European countries, we analyze two economic aspects of subjective well-being of older Europeans: satisfaction with household income, and job satisfaction. Both have been shown to contribute substantially to overall well-being (satisfaction...

Several studies document the fact that low-educated workers participate less often infurther training than high-educated workers. The economic literature suggests that there is no significant difference in employer willingness to train low-educated workers, which leaves the question of why the...