infonet-economy

Trust and betrayal of trust are ubiquitous in human societies. Recent behavioral evidence shows that the neuropeptide oxytocin increases trust among humans, thus offering a unique chance of gaining a deeper understanding of the neural mechanisms underlying trust and the adaptation to breach of trust. We examined the neural circuitry of trusting behavior by combining the intranasal,…

In complex natural environments, auditory and visual information often have to be processed simultaneously. Previous functional magnetic resonance imaging (fMRI) studies focused on the spatial localization of brain areas involved in audiovisual (AV) information processing, but the temporal characteristics of AV information flow in these regions remained unclear. In this study, we…

The British Industrial Revolution triggered a socioeconomic transformation whereby the landowning aristocracy was replaced by industrial capitalists rising from the middle classes as the economically dominant group. We propose a theory of preference formation under financial-market imperfections that can account for this pattern. Parents shape their children’s preferences in response…

hort-run equilibrium of supply and demand. Assets pay dividends that are partially consumed and partially
reinvested. The traders use fixed-mix investment strategies (portfolio rules), distributing their wealth between
assets in fixed proportions. Our main goal is to identify globally evolutionarily stable strategies, allowing an
investor to “survive,” i.e., to…

Recent demonstrations that music is capable of conveying semantically meaningful information has raised several questions as to what the underlying mechanisms of establishing meaning in music are, and if the meaning of music is represented in comparable fashion to language meaning. This paper presents evidence showing that expressed affect is a primary pathway to music meaning and…

The experimental literature and studies using survey data have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. Individuals are concerned about social comparisons. However, behavioral evidence in the field is rare. This paper provides an empirical analysis…

When agents are liquidity constrained, two options exist — borrow or sell assets. We compare the welfare properties of these options in two economies: in one, agents can borrow (issue inside bonds) and in the other they can sell government bonds (outside bonds). All transactions are voluntary, implying no taxation or forced redemption of private debt. We show that any allocation in…

Advertisements provide consumers with knowledge about private products, whereas political information is required to provide voters with knowledge of public issues. Modern information technologies and globalisation are increasing the exposure of individuals to information. Goods advertising is competing with political information for people's attention. This paper presents a…

We use Bayesian model averaging to analyze the sample evidence on industry return predictability within the U.S. stock market in the presence of model uncertainty. The posterior analysis shows the importance of in.ation and earnings yield in predicting industry returns. The analysis shows that the out-of-sample performance of the Bayesian approach is, in general, superior to that of…