Behavioral experiments conducted so far to establish existence of endowment effect as propounded by prospect theorists typically endow subjects with a single good. In this paper we depart from this setting by giving subjects initial endowment bundles which consist of two goods: chocolates and...

The Indian government became the first regulator in the world to mandate a minimum CSR spending on certain specified social welfare activities. Prior research in psychology indicates that individuals tend to focus heavily (Anchor) on the initial information or estimate in a decision making...

In this paper we test the hypothesis of whether the presence of increasing number of microfinance institutions leads to over-borrowing. Some recent theoretical literature suggests that, in a joint liability setting, borrowers are more likely to borrow from multiple sources – without increasing...

In this paper, we model welfare implications of entry of commercial microfinance institutions (MFIs). We initially characterize equilibrium with a sole fund-constrained benevolent credit institution followed by equilibrium with only profit-motivated MFIs. We show that entry of such MFIs can lead...

What is the effect of competition on prices in a market where the product is offered at different quality levels? Would the increase in competition reduce the price of high quality good more than the low quality good? These are the questions examined in this paper in the context of the video...

Given the complexity of over-the-counter derivatives and structured products, al- most all of derivatives pricing today is based on numerical methods. While large fi- nancial institutions typically have their own team of developers who maintain state- of-the-art financial libraries, till a few...

Objective function in term structure estimation with price errors is not only non-linear but also non-convex in parameters. This makes the final results sensitive to both the choice of the optimization routine as well as to the starting guess. This study looks at the impact of the choice of the...