We conduct a proper test of the claim that people are overconfident, in the sense that they believe that they are better than others. The results of the experiment we present do not allow us to reject the hypotheses that the data has been generated by perfectly rational, unbiased, and...

Extant literature indicates that technology, and by implication its underlying knowledge base, determines long-run economic performance. Absent from the literature with respect to developing countries are quantitative assessments of the nexus between technology as knowledge and economic...

This paper considers information trading in fixed networks of economic agents who can only observe and trade with other agents with whom they are directly connected. We study the nature of price competition for information in this environment. The linear network, when the agents are located at...

Innovation has become one of the most important issues in modern knowledge society. As opposed to radical innovation this paper introduces the concept of Emergent Innovation: this approach tries to balance and integrate the demand both for radically new knowledge and at the same time for an...

The Information and Communication Technologies (ICT) play a crucial role in the world today. Globalization as we know it and the emergence of so-called Information and Knowledge Society are the direct consequence of radical technological innovations that led to the development of the Internet...

We examine a model in which multiple buyers with single-unit demand are faced with an infinite sequence of auctions. New buyers arrive on the market probabilistically, and are each endowed with a constant private value. Moreover, objects also arrive on the market at random times, so the number...

This paper considers the problem of a decision maker who is faced with a dynamic decision problem with several alternatives, and additionally can engage in prior consultation on one of the alternatives. Information received from others is coarse. When consulting on an alternative that the...

Many claims about political behavior are based on implicit assumptions about human reasoning. One such assumption, that political actors think in complex and similar ways when assessing strategies, is nested within widely used game theoretic equilibrium concepts. Empirical research casts doubt...

This paper reconsiders the applicability of a recently posed theoretical result concerning the optimality of not providing interim performance evaluations to the agent when implementing a given amount of total effort. The model used by Lizzeri, Meyers and Persico (2002) under the assumption of a...

This paper presents a simple model in which the learning behavior of agents generates fluctuations in money demand and possibly causes a prolonged depression. We consider a stochastic Money-in-Utility model, where agents receive utility from holding money only when a liquidity shock (e.g., a...