Based on a pioneering work by Ippolito (1980) we construct a simple model wich allows the welfare effects of third-degree price discrimination to be well understood and explained. The decomposition of the change in welfare into a misallocation effect and an output effect has advantages over the...

Also published as Working Paper DFAEII 2009-05 and as an article in: Games and Economic Behavior, 2010, vol. 69, issue 2, pages 249-257.

Coal-fired power plants may enjoy a significant advantage relative to gas plants in terms of cheaper fuel cost. Still, this advantage may erode or even turn into disadvantage depending on CO2 emission allowance price. This price will presumably rise in both the Kyoto Protocol commitment period...

This paper was presented at the VI STOREP Conference, held at the University of Florence, Italy, 3rd and 4th June 2009.

This paper surveys the theories of social preferences. Social preferences are based on that people not only care about their own well-being, but they have a certain concern with payoffs and/or actions of others. We classify two approaches: distributional and intention-based models, and later...

Drift appears to be crucial to study the stability properties of Nash equilibria in a component specifying different out-of-equilibrium behaviour. We propose a new microeconomic model of drift to be added to the learning process by which agents find their way to equilibrium. A key feature of the...

Los sistemas de pensiones públicas de reparto con prestación definida a lo largo del mundo se están convirtiendo a planes de aportación definida capitalizados, donde los agentes eligen sus carteras de acciones y bonos. A fin de hacer más atractivas al público estas reformas, los gobiernos...

The paper adapts a non cooperative game presented by Dagan, Serrano and Volij (1997) for bankruptcy problems to the context of TU veto balanced games. We investigate the relationship between the Nash outcomes of a noncooperative game and solution concepts of cooperative games such as the...

In this article an index decomposition methodology is used to estimate the effect of intersectorial and intrasectorial changes in explaining the 38% reduction in industrial energy intensity in the Basque Autonomous Community from 1982 to 2001. Period-wise additive decomposition results show that...

In this paper we present a solution concept for abstract systems called the admissible hierarchic set. The solution we propose is a refinement of the hierarchic solution, a generalization of the von Neumann and Morgenstern solution. For finite abstract systems we show that the admissible...