Female Labour Supply, Human Capital and Welfare Reform We consider the impact of tax credits and income support programs on female education choice, employment, hours and human capital accumulation over the life-cycle. We analyze both the short run incentive effects and the longer run implications of such programs. By allowing for risk aversion and savings, we quantify the insurance value of al...

in this article,we briefly analyse cognitive science and cognitive economics. generally, there are two main theories related to cognitive science and brain performance models. first theory which are inspired by computer and artifical intelligence and second the connectionist models. the connectionist theory is the most prevalent in cognitive science now. hayek and north ,the two nobel laureates...

In this paper we provide experimental evidence indicating that incentive contracts may undermine voluntary cooperation. This suggests that explicit incentives may have costly side effects that have been largely neglected by economists. In our experiments the undermining effect is so strong that the incentive contracts are less efficient than contracts without any incentives. Buyers, who are in ...

during the last two decades, decentralization has been supposed as a tool for making the public sector policies more efficient. despite the claimed benefits, there are some costs; some of decentralization theorists believe that devolution of pure public goods provision to local governments has led to the failure of decentralization policies. this article uses game theory to study the implicatio...

Attitudes of conformity can be understood as a product of adaptation. Existing models of conformity invoke preference falsification with individuals hiding their true preferences. We posit an adaptive mechanism for conformity. Because non-conformity leads to costs as a dissenting individual is shut out of social networks and majority coalitions, individuals have an incentive to sublimate their ...

We examine the interaction between risk (uncertainty) and production efficiency in determining pay-performance sensitivity in optimal executive compensation. Particularly, we show that the risk-incentive trade-off is exacerbated (attenuated) as production efficiency increases when the efficiency level is greater (less) than the level of compensation risk. This result suggests that the optimalit...

Music industry is “facing the music” now. Big stakeholders try very hard to maintain their positions while other players see opportunities in the advent of peer-to-peer networks. Music, as a kind of representative information good, deserves its economic properties to be examined and made explicit. Using the familiar Hotelling (1929) model of product differentiation, I show that the current musi...

The presence of a vertical externality, and therefore an incentive to integrate or to impose vertical restraints, is investigated in 11 posted-offer experiments. Upstream markets are characterized by a single seller. When the downstream market consists of three firms, there is no evidence of a vertical externality, and behavior is consistent with the vertically integrated outcome. With a single...

Investment banks legally pursue supposedly price stabilizing activities in the aftermarket of IPOs. We model the offering procedure as a signaling game and analyze how the possibility of potentially profitable trading in the aftermarket influences pricing decisions by investment banks. When maximizing the sum of both the gross spread of the offer revenue and profits from aftermarket trading, in...

We apply the idea of partial honesty, first introduced by Dutta and Sen [Nash Implementation with Partially Honest Individuals, Game Econ. Behav. 74 (2012) 154-169.] in a complete information setting, to environments with incomplete information. We show that with private values and at least three individuals, incentive compatibility and no veto power are together sufficient for full implementat...