Following Vartiainen (2007) we consider bargaining problems in which no exogenous disagreement outcome is given. A bargaining solution assigns a pair of outcomes to such a problem, namely a compromise outcome as well as a disagreement outcome: the interpretation is that the latter results if the...

Democratic decision-making is often defended on grounds of the ''wisdom of crowds'': decisions are more likely to be correct if they are based on many independent opinions, so a typical argument in social epistemology. But what does it mean to have independent opinions? Opinions can be...

The contemporary theory of epistemic democracy often draws on the Condorcet Jury Theorem to formally justify the `wisdom of crowds''. But this theorem is inapplicable in its current form, since one of its premises---voter independence---is notoriously violated. This premise carries...

In this paper we enrich the Brabander (1981) and Brander and Krugman (1983) model of reciprocal entry by placing it i a setting of two-sided asymetric information. Following the limit pricing methodology of Milgrom and Roberts (1982), we show that the limit price is affected by a firm''s desire...

We study experimentally how players learn to make decisions if they face many different (normal-form) games. Games are generated randomly from a uniform distribution in each of 100 rounds. We find that agents do extrapolate between games but learn to play strategically equivalent games in the...

In this paper, we compare experience-earnings profiles of employees with vocational and generaleducation background in Germany, the Netherlands and the United Kingdom, three countries withfundamentally different education systems. Using Mixed-Effects Linear Regression Models we showthat earnings...

In this paper, we combine elementary revealed preference principles and nonparametric estimation techniques in order to obtain nonparametric bounds on the distribution of the money metric utility over a population of heterogeneous households. The main benefit of our approach is that it is...

We record the existence of an availability heuristic that is reflected in disaster myopia of U.S. investors and exists prior to the attacks of 9/11. We argue that this is fueled by an aggregate experience hypothesis effect, resulting in a pronounced increase in the sensitivity of U.S. stock...

We study characterizations of implementable allocation rules when types are multi-dimensional, monetary transfers are allowed, and agents have quasi-linear preferences over outcomes and transfers. Every outcome is associated with a continuous valuation function that maps an agents type to his...

This paper quantifies the effect of reallocation dynamics on aggregate productivity developments in the banking sectors of Europe and the United States. We document an increase in productivity over the period 1995-2009, on the order of 11 in the US and 19 in Europe. At an annual frequency,...