We present a dynamic model of endogenous interest group sizes and policymaking. The model integrates `top-down' (policy) and `bottom-up' (individual and social-structural) influences on the development of interest groups. Comparative statics results show that the standard assumption of...

Competition policy is a subject of often heated debate. Competition authorities, seeking to battle anticompetitive acts in complex cases to the best of their abilities, regularly find themselves advised by rival economic theories and disputed empirical analyses. As a consequence, there is a real...

We present a dynamic model of endogenous interest group sizes and policymaking. Our model integrates `top-down' (policy) and `bottom-up' (behavioral) influences on the development of interest groups. We show that, for example an increase in the contribution by members of an interest group need...

We consider a standard two generations version of the overlapping generations model with different learning algorithms. Agents predict inflation rates on the basis of some mis-specified (linear) perceived law of motion, which is estimated by running a regression on past prices or inflation...

In both US and EU merger control, merger-specific efficiencies are recognized as a possible defense for horizontal mergers that raise competition concerns. We introduce the Werden-Froeb-index (WFI) to assist in evaluating these efficiencies. The index measures the average reduction in marginal...

We investigate an inflationary overlapping generations model where households predict future inflation rates by running a least squares regression of inflation rates or prices on their past levels. We critically examine the results on learning equilibria obtained by Bullard (1994) and...

We extend the basic model of spatial competition in two directions. First, political parties and voters do not have complete information but behave adaptively. Political parties use polls to search for policy platforms that maximize the probability of winning an election and the voting decision...

We investigate expectation formation in a controlled experimental environment. Subjects are asked to predict the price in a standard asset pricing model. They do not have knowledge of the underlying market equilibrium equations, but they know all past realized prices and their own predictions....