If a company's auditor believes that the company is likely to enter bankruptcy, the auditor is required to warn investors by giving a 'qualified' audit report. This paper investigates whether auditor switching can help explain why auditors frequently fail to warn about impending bankruptcy. The...

Standard practice in stated preference typically blurs the distinction between household and individual responses, but without a clear theoretical or empirical justification for this approach. To date there have been no empirical tests of whether values for say a two adult household elicited by...

Recent bargaining experiments demonstrated an impact of anonymity and incomplete information on subjects' behavior. This has rekindled the question whether “fair” behavior is inspired by regard for others or is explained by external forces. To test for the importance of external pressure we...

When an economy experiences crisis that reduces the level of human capital stock, such a change should be accompanied by a change in the investment level. Is this always the best thing to do? In an optimal growth model of human capital evolution this paper shows that cutting down investment...

We compare the treatment of Colombia in large cross-country conflict datasets with the information of the detailed micro dataset of Restrepo, Spagat and Vargas (2003). We find a general tendency of the big datasets to underestimate the magnitude of the Colombian conflict and to mischaracterize...

This paper constructs a game-theoretic model of elections in alternative electoral systems with three or four candidates. Each electoral system specifies how the platforms of the candidates and their scores give rise to an outcome. When geometrical analysis shows that two outcomes can compete...

This paper introduces a non-cooperative game-theoretic model of sequential network formation, in which players propose links and demand payoffs. Payoff division is therefore endogenous. We show that if the value of networks satisfies size-monotonicity, then each and every equilibrium network is...

The UK Association of University Teachers conducted a 2000/2001 survey of staff in 6 British universities to determine the experience of lesbian, gay and bisexual (LGB) employees holding academic and non-academic appointments. We analyse the salaries and ranks held by LGB individuals, guided by...

Military service reduces the civilian work experience of veterans but subsidizes their college attendance through the GI Bill. Estimates of veteran effects using the Vietnam-era draft-lottery show a post-service earnings impact close to zero in 2000, coupled with a marked increase in college...

In a two-stage public goods experiment, we study the framing effect due to the adoption of a cultural context. Our results show a slight increase in the allocations of subjects’ endowments to the cultural good when the cultural context is implemented in the laboratory. In particular, in one...