We consider a two-stage model where a leader, according to its risk-averse proneness, solves a MinSup problem with constraints corresponding to the reaction sets of a follower and defined by the solutions of a quasi-variational inequality (i.e. a variational inequality having constraint sets...

We analyze the reaction of the U.S. Treasury bond market to innovations in macroe-economic fundamentals. We identify these innovations based on macroeconomic news, which are defined as differences between the actual releases and market expectations. We find that that macroeconomic news explain...

We extend Vind's classical theorem on the measure of blocking coalitions valid in finite dimensional atomless economies (see [29]), to include the possibility of infinitely many commodities as well as the presence of atoms. The commodity space is assumed to be an ordered Banach space which has...

This paper offers a new and robust model of the emergence and persistence of cooperation when interactions are anonymous, the population is well-mixed, and the evolutionary process selects strategies according to material payoffs. The model has a Prisoner’s Dilemma structure, but with an...

Different solution concepts for strategic form games have been introduced in order to weaken the consistency assumption that players' beliefs - about their opponents strategic choices - are correct in equilibrium. The literature has shown that ambiguous beliefs are an appropriate device to deal...

In previous papers we studied a game model in which players' uncertainty is expressed entirely in the space of probabilities (lotteries) over consequences, it depends on the entire strategy profile chosen by the agents and it is described by the so called ambiguous beliefs correspondences. In...

Through a field experiment in Sri Lanka I analyze the role of experimentally-induced memories of 2004 tsunami on behavior in a trust game in which personal notions of cheating are elicited. Microfinance borrowers were randomly assigned to a treatment (control) group consisting in watching a...

When are strategic appointments useful in curbing policy bias from ex-post negotiation between state agencies and special interest groups? Bertelli and Feldmann (Jnl. of Public Admin. Research and Theory, 2007) provide an insightful analysis of the issue within a full information model of...

The evolution of the banking industry has always been affected by recurrent waves of technological, regulatory and organizational changes. All such changes have significant effects on the spatial organization of banks, the interconnectedness of geographical credit markets and the core-periphery...

In this paper we empirically test the recent lender-based theory for the use of collateral in bank lending. Based on a proprietary dataset of loan contracts written by a local bank in competitive credit markets, we use the physical proximity between borrowers and the lending branch of the bank...