When asked to mentally simulate coin tosses, people generate sequences which differ systematically from those generated by fair coins. It has been rarely noted that this divergence is apparent already in the very first mental toss. Analysis of several existing data sets reveals that about 80% of...

An extension of Condorcet's paradox by McGarvey (1953) asserts that for every asymmetric relation R on a finite set of candidates there is a strict-preferences voter profile that has the relation R as its strict simple majority relation. We prove that McGarvey's theorem can be extended to...

We consider a multi-period auction with a seller who has a single object for sale, a large population of potential buyers, and a mediator of the trade. The seller and every buyer have independent private values of the object. The mediator designs an auction mechanism which maximizes her revenue...

We consider a sequential rule, where an item is chosen into the group, such as a university faculty member, only if his score is better than the average score of those already belonging to the group. We study four variables: The average score of the members of the group after k items have been...

Let X_n,…,X₁ be i.i.d. random variables with distribution function F and finite expectation. A statistician, knowing F, observes the X values sequentially and is given two chances to choose X's using stopping rules. The statistician's goal is to select a value of X as large as possible. Let V_n²...

Three values for non-transferable utility games -- the Harsanyi NTU-value, the Shapley NTU-value, and the Maschler-Owen consistent NTU-value -- are compared in a simple example.

Empirical evidence suggests that the distribution of earnings reports is discontinuous. This is puzzling since the distribution of true earnings is likely to be continuous. We present a model that rationalizes this phenomenon. In our model, managers report their earnings to rational investors,...