This paper tests Psychological Forward Induction in the Lost Wallet Game, in an attempt to explain an empirical puzzle observed by Dufwenberg & Gneezy (2000) that the size of the outside option forgone by the first mover does not affect the behavior of the second mover. This is puzzling as...

Much of the education finance literature is concerned with evaluating policies that seek to lessen the effect of economic disparities outside schools on the disparity of student outcomes within them. Examples include school finance reform to reduce schools’ reliance on local wealth, special...

We show that the last few components in principal component analysis of the correlation matrix of a group of stocks may contain useful financial information by identifying highly correlated pairs or larger groups of stocks. The results of this type of analysis can easily be included in the...

The theoretical literature on asymmetric first-price auctions has focused mainly on settings with either (1) exactly two bidders or (2) an arbitrary number of bidders with types in a common support. Even though closed form solutions are typically impossible, there is enough structure in the...

In this paper, we solve two problems related to growth and survival probability maximization of an economy. We assume that the problems are subject to the stochastic net worth model introduced by Fleming and Stein (2004) and apply the techniques of stochastic optimal control theory in order to...

Will generous return policies in auctions benefit bidders? We investigate this issue using second-price common-value auctions. Theoretically, we find that the bidding equilibrium is unique unless returns are free, in which case there exist multiple equilibria with different implications for...

Boundary algebra [BA] is a simpler notation for Spencer-Brown’s (1969) primary algebra [pa], the Boolean algebra 2, and the truth functors. The primary arithmetic [PA] consists of the atoms ‘()’ and the blank page, concatenation, and enclosure between ‘(‘ and ‘)’, denoting the...

CV researchers have found that the hypothetical values respondents place on a nested sequence of environmental goods are sensitive to the order in which the goods are presented. Typically, the smallest bundle of goods is valued more highly if presented first than if following more comprehensive...

This article argues that it is doubtful that the fivefold increase in maximum fines under New Zealand's Health and Safety in Employment Amendment Act 2002 will be successful in providing suitable precautionary incentives. Expected penalties remain at relatively low levels, with the continued use...

In March 2009, Business and Economic Research Limited ("BERL") published “Costs of Harmful Alcohol and Other Drug Use,” a report jointly commissioned by the Ministry of Health and ACC. BERL was asked to measure the costs of drug and alcohol abuse to New Zealand society, but not to evaluate...