The extent of genetic diversity in food crops is important as it affects the risk of attack by pathogens. A drop in diversity increases this risk. Farmers may not take this into account when making crop choices, leading to what from a social perspective is an inadequate level of diversity. © 2003 Elsevier B.V. All rights reserved. JEL classification: Q1; Q2; C72

We show that if agents are risk neutral, prizes outperform wages if and only if there is su¢ cient pride and envy relative to the noisiness of performance. If agents are risk averse, prizes are a necessary supplement to wages (as bonuses). Keywords: Envy, Pride, Wages, Prizes, Bonus JEL Classi…cation: C72, D01, D23, L14.

This paper investigates communication between an informed expert and an uninformed principal via a strategic mediator. We demonstrate that, for any bias in the parties’preferences, there exists a strategic mediator that provides the highest expected payo¤ to the principal, as if the players had communicated through an optimal non-strategic mediator. JEL classi…cation: C72, D82, D83

This paper further studies a model of information elicitation due to Smorodinsky and Tennenholtz [13], where the introduction of sequential mechanisms results in more efficiency than the classical simultaneous mechanism design approach entails. Whereas the original work focused on anonymous function and settings where information is distributed independently across agents we extend the results ...

Linear altruism predicts the estimated preferences to be independent of the subject’s position in the game, if the role allocation is randomly determined, because subjects, in each role, have the same preferences ex ante. We test and reject this hypothesis. JEL Classification: C51, C92, C72, D03

We show the existence of a pure strategy, symmetric, increasing equilibrium in double auction markets with correlated private valuations and many participants. The equilibrium we find is arbitrarily close to fully revealing as the market size grows. Our results provide strategic foundations for price-taking behavior in large markets. JEL Classification: C62, C72, D44, D82

I propose a simple simulation procedure for large games with multiple equilibria. The simulation procedure is based on a best-response dynamic. The implied equilibrium selection mechanism is intuitive: more stable equilibria are selected with higher probability. JEL Codes: C62, C72, C73

We construct a family of retaliatory equilibria for the Japanese ascending auction for multiple objects, thus showing that while it is immune to many of the tacitly collusive equilibria studied in the literature, it is not entirely immune when some bidders are commonly known to be interested in a specific object. JEL Classification: C72, D44.

The subjective framework for reasoning is extended to incorporate the representation of unawareness in games. Both unawareness of actions and decision makers are modeled as well as reasoning about others’ unawareness. It is shown that a small grain of uncertainty about unawareness with rational decision makers can lead to cooperation in the finitely repeated prisoner’s dilemma. JEL Classificati...

We construct a market based mechanism that induces players in a non-cooperative game to make the same choices as characterize cooperation. We then argue that this mechanism is applicable to a wide range of economic questions and illustrate this claim using the problems of ”The Tragedy of the Commons” and ”R&D Spillovers in Duopoly”. JEL: .C72, D62, H40.