infonet-economy

This paper analyzes a capacity-planning and pricing problem of a monopolist facing uncertain demand. The model incorporates .soft. and .hard. capacity constraints (soft constraints can be relaxed at a cost while hard constraints cannot be relaxed) and demand uncertainty. The firm receives additional demand information within the planning horizon. The solution to the planning problem...

The book establishes links between regularity and derivative concepts of nonsmooth analysis and studies of solution methods and stability for optimization, complementarity and equilibrium problems. In developing necessary tools, it presents, in particular, (i) an extended analysis of Lipschitz functions and the calculus of their generalized derivatives, including regularity,...

Building on the enactment perspective and past work on the self-fulfilling prophecy, this paper explores how organizational decline can be enacted through self-fulfilling prophecies of decline. We present two self-fulfilling prophecy-based models of organizational decline, one in which decline is enacted unintentionally through the predictions of an organization's managers, and...

The paper investigates the effect of interest policy on price bubbles, trading behavior and portfolio choice in experimental stock markets. Anseries of experiments has 8 participants trade an asset over 15 periods. Alternatively, the participants can invest money in interest-bearing bonds. Treatment groups are subjected to an endogenous interest policy, while control groups...

Experimental games turned out to be remarkably productive tools for examining the nature of social preferences and social norms. This paper describes the methods and tools of experimental game theory and provides a selection of games that have been useful. We also discuss the role of evolutionary explanations of and social preference theory in organizing the data in a coherent way....

This paper investigates the role of fiat money in decentralized markets, where producers have private information about the quality of the goods they supply. Money is divisible, terms of trade are determined endogenously, and agents can finance their consumption with money or with real production. When the fraction of high quality producers in the economy is given, money promotes the...

"We use alternative assumptions about the divisibility of goods and money and thenability of agents to use lotteries on money to investigate to what extent the indivisi-bilitynof money is the cause for the typically ine .cient production and consumption decisions in search-theoretic models of money. Our framework potentially generates three types of inefficiencies: the no-trade...

Many people believe that economists in general are more selfish than other people and that this greater selfishness is due to economics education. This paper offers empirical evidence against this widely held belief. Using a unique data set on giving behaviour in connection with two social funds at the University of Zurich, it is shown that economics education does not make people...