Voters assign a score to each of the many available alternatives. We study the normativeproperties of procedures that aggregate the scores collected in the ballot box. A vast class ofaggregation procedures, including procedures based on the pairwise comparison of alternatives,satisfy May''s...

In this paper we show experimentally that in a sequential auction the presence of synergies leads to more overbidding which in turn may result in bankruptcies. In line with theoretical predictions we find that the seller benefits from the buyers’ synergies. In contrast to theory the buyers...

This paper investigates banking and sovereign distress in the Eurozone and the importance ofdirect and indirect financial exposures. We use BIS cross-border direct banking flows to linkmember states in a GVAR framework and jointly model sectoral CDS premia. Based on balance sheetpositions of an...

We consider a model of dynamic price competition to analyze the impact of consumer inertia on theability of firms to sustain high prices. Three main consequences are identified: (i) maintaininghigh prices does not require punishment strategies when firms are sufficiently myopic, (ii) ifbuyers...

This paper proposes a mixed-frequency error-correction model in order to develop a regressionapproach for non-stationary variables sampled at different frequencies that are possiblycointegrated. We show that, at the model representation level, the choice of the timing betweenthe low-frequency...

This paper introduces a new generation of Early Warning Systems (EWS) which takes into account dynamics within a system composed by binary variables. We elaborate on Kauppi and Saikonnen (2008), which allows to consider several dynamic specifications and to use an exact maximum likelihood...

A contingent contract in a transferable utility game under uncertainty specifies an outcome for each possible state. It is assumed that coalitions evaluate these contracts by considering the minimal possible excesses. A main question of the paper concerns the existence and characterization of...

We study a model of multilateral bargaining over social outcomes represented by points in the unit interval. An acceptance or rejection of a proposal is determined by a voting rule as represented by a collection of decisive coalitions. The focus of the paper is on the asymptotic behavior of...

In drawing on modern finance theory, this note demonstrates the importance of financial instruments for large public sector projects. An explicit link to the theory of Henry George is made, and a public sector financing approach is being demonstrated by using the example of the Oder floodings in...

The Colleges (Dutch: Hogescholen) have gained an important position in the knowledge infrastructure. In 1999, the number of enrolled College students increased to nearly 300,000 and the number of College graduates to more than 50,000. Since the nineties, the higher education policy is...