We conduct a repeated VCM (voluntary contribution mechanism) experiment using thestrategy method. We compare a partner and a stranger design and find that participantsin the partner treatment provide (i) higher initial contributions, (ii) higher contributionson average over all periods, and...

This paper attempts to predict the bear conditions on the US stock market. To this aim weelaborate simple predictive regressions, static and dynamic binary choice (BCM) as well asMarkov-switching models. The in- and out-of-sample prediction ability is evaluated and we comparethe forecasting...

This paper discusses and illustrates identification problems in personality psychology. The measures used by psychologists to infer traits are based on behaviors, broadly defined. These behaviors are produced from multiple traits interacting with incentives in situations. In general, measures...

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...