We consider the generalization of Shapley and Scarf''s (1974) model of trading indivisible objects (houses) to so-called multiple-type housing markets. We show (Theorem 1) that the prominent solution for these markets, the coordinate-wise core rule, is second-best incentive compatible. In other...

Redistribution is an inevitable feature of collective pension schemes and economic experiments have revealed that most people have a preference for redistribution that is not merely inspired by self-interest. Interestingly, little is known on how these preferences interact with preferences for...

Whereas many research studies have focused on website features triggering consumer trust in e-retailing, so far no study has attempted to identify all psychological antecedents of trust, i.e. what exactly “happens” in the consumer’s mind before or while the person decides to trust...

Consider exchange economies in which preferences are continuous, convex and strongly monotonic. It is well known that the Walrasian correspondence is not Nash implementable. Maskin monotonicity (Maskin, 1999) is violated for allocations at the boundary of the feasible set. We derive an...

This paper is concerned with the minimal number of profiles at which a unanimous and anonymous social choice function is manipulable. The lower bound is derived when there are three alternatives to choose from. Examples of social choice functions attaining the lower bound are given. We...

This paper proposes an assignment model where sorting occurs on attributes that are simultaneously a skill (Sattinger, 1979) and a preference (Tinbergen, 1956). The key feature of this model is that the wage function admits both jobs'' and workers'' attributes as arguments. Since this function...

We compare the manipulability of different choice rules by considering the number of manipulable profiles. We establish the minimal number of such profiles for tops-only, anonymous, and surjective choice rules, and show that this number is attained by unanimity rules with status quo.

The ability to process new information and to compute conditional probabilities is crucial for making appropriate decisions under uncertainty. In this paper, we investigate the capability of inferring conditional probabilities in a representative sample of the German population. Our results show...

A population''s level of terrorism depends on two factors: people''s preferences (would they like creating damage?) and the constraints under which people act (what damage could they create, and at what punishment?). Cause-related policies, e.g. improving social stability or education, aim at...

We extend the domain of preferences to include menu-dependent preferences and characterize the maximal subset of this domain in which the revelation principle holds. Minimax-regret preference is shown to be outside this subset.