Individual disagreements are assumed to be reflected in the preferences. Distance functions, e.g.,the well-known Kemeny (1959) distance, are used to measure these disagreements. However, adisagreement on how to rank the top two alternatives may be perceived more (or less) than adisagreement on...

Although both economists and psychologists seek to identify determinants of heterogeneity inbehavior, they use different concepts to capture them. In this review we first analyze theextent to which economic preferences and psychological concepts of personality - such as the BigFive and locus of...

Shrinkage estimators of the covariance matrix are known to improve the stability over time of the Global Minimum Variance Portfolio (GMVP), as they are less error-prone. However, the improvement over the empirical covariance matrix is not optimal for small values of n, the estimation sample...

We study the implications of procedural fairness on income taxation. All taxation schemes areallowed for, up to the constraints implied by incentive compatibility and budget balance. Weformulate procedural fairness as a particular non-cooperative bargaining game and examine thestationary subgame...

Spiteful, antisocial behavior undermines the moral and institutional fabric of society, producingdisorder, fear and mistrust. Previous research demonstrates the willingness of individuals to harmothers, but little is understood about how far people are willing to go in being spiteful or...

We provide a joint treatment of three major issues that surround testing for a unit root in practice: uncertainty as to whether or not a linear deterministic trend is present in the data, uncertainty as to whether the initial condition of the process is (asymptotically) negligible or not, and...

The present paper extends the standard model of pairwise communication among Bayesianagents to cases where the structure of the communication protocol is not commonly known.We show that, even under strict conditions on the structure of the protocols and the nature of the transmitted signals, a...

We study bankruptcy games where the estate and the claims have stochastic values. We use the WeakSequential Core as the solution concept for such games. We test the stability of a number of wellknown division rules in this stochastic setting and find that most of them are unstable, exceptfor the...

We show that synergies enhance bidding competition to such an extent that they are a curse rather than a blessing for the bidders; they may even induce serious bankruptcy problems.

A set of coalition structures P is farsightedly stable (i) if all possible deviations from any coalition structure p belonging to P to a coalition structure outside P are deterred by the threat of ending worse off or equally well off, (ii) if there exists a farsighted improving path from any...