We analyze binary choice models in communication networks, in which both, the formation of links in the network as well as the action choices are endogenous. We provide a complete characterization of the equilibrium action choices and networks, where agents choose their strategies - actions and...

We examine the incentives to self-select into politics and how they depend on the transparency of the entry process. To this end, we set up a two-stage political competition model and test its key mechanisms in the lab. At the entry stage, potential candidates compete in a contest to become...

Quantum decision theory (QDT) is a recently developed theory of decision making based on the mathematics of Hilbert spaces, a framework known in physics for its application to quantum mechanics. This framework formalizes the concept of uncertainty and other effects that are particularly manifest...

Decision making of agents who are members of a society is analyzed from the point of view of quantum decision theory. This generalizes the approach, developed earlier by the authors for separate individuals, to decision making under the influence of social interactions. The generalized approach...

Researchers describing the discovery of something they are not equipped to fully understand run the risk that their reach will exceed their grasp. And so, as mere enthusiastic newcomers to the study of author Rex Stout, we will limit ourselves to: (1) reporting that we have run across an early...

This paper considers a epistemic game-theoretic model of group identification which describes the evolving process of a collective action rule of the members in a social group. Group identity describes that the solutions to "who we are'' and "what we are'' questions among the members in a group....

Consensus standardization often involves bargaining without side payments or substantive compromise, creating a war of attrition that selects through delay. We investigate the trade-off between screening and delay when this process selects for socially valuable but privately observed quality....

One characteristic feature of central banks today is that policy decisions are almost exclusively made by a committee rather than by a single policy maker. Another is that central banks are considerably more transparent than they used to be. Together, this has brought to the fore an important...

We consider one-to-one matching problems under two modalities of uncertainty that differ in the way types are assigned to agents. Individuals have preferences over the possible types of the agents from the opposite market side and initially know the “name” but not the ”type” of the other...

For more than a century, careful readers of the Green Bag have known that “[t]here is nothing sacred in a theory of law...which has outlived its usefulness or which was radically wrong from the beginning...The question is What is the law and what is the true public policy?” Professor Orin...