Domains of individual preferences for which the well-known impossibility theorems of Gibbard-Satterthwaite and Muller-Satterthwaite do not hold are studied. To comprehend the limitations these results imply for social choice rules, we search for the largest domains that are possible. Here, we...

We present a laboratory experiment in which we investigate bidding behavior with independent private values in the recently proposed bisection auction, and compare it with two classical auction formats - the Vickrey auction and the English auction. We test whether subjects behave strategically...

Standard impossibility theorems on judgment aggregation over logically connected propositions either use a controversial systematicity condition or apply only to agendas of propositions with rich logical connections. Are there any serious impossibilities without these restrictions? We prove an...

Stochastic games offer a rich mathematical structure that makes it possible to analyze situations with heterogeneous and interacting economic agents. Depending on the actions of the economic agents, the economic environment changes from one period to another. We focus on stationary equilibrium,...

This essay tries to put Simmel’s Theory of Money into the context of current discussions in economics concerning money. The essay has three parts. Part I looks at the contribution of Georg Simmel in its context, and offers remarks about the changing structure of economics as a discipline...

In public good provision, privileged groups enjoy the advantage that some of its members find it optimal to supply a positive amount of the public good. However, their inherent asymmetric nature may make the enforcement of cooperative behavior through informal sanctioning harder to accomplish....

When investigating the role of regulatory capital in bank mergers and acquisitions (M&As) we finds that i.e. US targets are better capitalized than their acquirers and non-acquired peers and that US banks maintain higher capital than European banks. Thus, US banks strategically raise their...

In this paper we present a new iterative auction, the bisection auction, that can be used for the sale of a single indivisable object. We will show that the bisection auction is computationally more efficient than the classical English auction while it still preserves all characteristics the...

This article discusses the notion of efficient statute law. The hypothesis that the common law develops towards efficiency is the organizing principle of the new law and economics as it originated at the University of Chicago School of Law. However, the hypothesis can be regarded as too limited....

This paper compares two approaches towards the empirical inertia of inflation and output. Two variants that produce persistence are added to a baseline DSGE model of sticky prices: 1) sticky information applied to firms, workers, and households; and 2) a backward-looking inflation indexation...