We study duopolistic competition in a differentiated market with firms setting prices and quantities, without explicitly imposing market clearing. Unlike the commonly adopted assumption of profit maximizing firms, we assume firm behavior to be shaped by a Darwinian dynamic: the less fitter firm...

Using a Threshold Vector Autoregression framework identified via sign restrictions, we answer three questions: First, are fiscal policy shocks regime-dependent? Second, which variables are governing the regime? Third, what are the effects of fiscal policies on the main macroeconomic variables in...

In this paper we investigate how successful social bonding theory is at predicting juvenile delinquency and school dropout behaviour. We adopt a simple dynamic approach which assumes that past involvement in risky behaviour reduces individual restraints for future participation in risky...

According to standard rational choice theory, as commonly used in political science and economics, an agent''s fundamental preferences are exogenously fixed, and any preference change over decision options is due to Bayesian information learning. Although elegant and parsimonious, this model...

We consider agents whose language can only express probabilistic beliefs that attach a rationalnumber to every event. We call these probability measures rational. We introduce the notion of arational belief hierarchy, where the first order beliefs are described by a rational measure overthe...

This paper studies a traditional monopolistic market of information goods in the presenceof an inherently strong peer-to-peer file-sharing network. Specifically, such a strongnetwork is made possible by a few fanatic users who selflessly contribute to the sharingof files. We find that the most...

This survey focuses on experimental labor markets investigating two aspects that deem us importantfor a better understanding of labor market relations and the consequences for labor marketpolicies. The first part of the survey is dedicated to papers that assess the prevalence ofreciprocal...

Cartel ringleaders can apply for amnesty in some jurisdictions (e.g., the E.U.), whereas in othersthey are excluded (e.g., the U.S.). This paper provides a survey of identified ringleaders inrecent European cartel cases and explores theoretically the effect of ringleader exclusion oncollusive...

We provide an explanation for the common finding that the effect of retirement on life satisfaction is negligible. For this we use subjective well-being measures for life and domains of life satisfaction that are available in the German Socio-Economic Panel (GSOEP) and show that the effect of...

In this paper we experimentally investigate whether partial coercion can in combination withconditional cooperation increase contributions to a public good. We are especially interested inthe behavior of the non-coerced populations. The main finding is that in our setting conditionalcooperation...