This paper considers the effects of a two-period interaction on the decision of a principal to delegate authority to a potentially biased but better informed agent. Compared to the (repeated) one-period case, the agent's first period actions may also signal his type which in turn impacts wages...

It is a well known fact that for any finite extensive form game G there is a strategy profile σ which, together with an appropriate system of beliefs μ, constitutes a sequential equilibrium of G (Kreps and Wilson, 1982). However, as we demonstrate in this paper, there are sequential equilibria...

In this paper, we study the individual payoff effects of overconfident self-perception in teams. In particular, we demonstrate that the welfare of an overconfident agent in a team of one rational and one overconfident agent or a team of two overconfident agents can be higher than that of the...

Many loan commitment contracts contain a material adverse change clause which allows banks to renege or step back from their commitment based on rather subjective claims regarding the borrowers' prospective financial situation. While this sounds like an attractive option for banks, empirical...

This paper compares two prominent empirical measures of individual risk attitudes - the Holt and Laury (2002) lottery-choice task and the multi-item questionnaire advocated by Dohmen, Falk, Huffman, Schupp, Sunde and Wagner (2011) - with respect to (a) their within-subject stability over time...

This paper proposes a simple framework to model contextual influences on procedural decision making. In terms of utility, we differentiate between monetary payoffs and contextual psychological ones, e.g. deriving from the subjects’ normative frame of reference. Monetary payoffs are treated as...

Many environment related public goods require investment of time or effort rather than simply money. Yet, most experimental studies on public good games focus on a distribution of money. In the present paper, we report results from an experiment (N=181) comparing an effort based public goods...

Grundlagen -- Mengen -- Zahlen -- Vollständige Induktion -- Analysis I -- Funktionen -- Folgen und Grenzwerte -- Stetigkeit -- Differentialrechnung -- Optimierung I -- Integration -- Lineare Algebra -- Vektorräume -- Lineare Gleichungssysteme -- Weiterführende Themen -- Analysis II --...

Abstracting from decision costs and potential self-control problems, additional choice options commonly are believed to make the decision maker better off. However, according to the questionnaire data reported in this paper, there is at least one more exception to this basic tenet of economics...

Game Theory essentially deals with two types of representations of strategic interaction: normal form and extensive form games. In the present paper, we propose a third more abstract approach based only on the information structure and choices. Linking standard game representations to their...