The Todaro Paradox Revisited The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an effici...

We present experimental evidence suggesting that observational learning (i.e., learning-by-notdoing but by observing) may outperform learning-by-doing.  2002 Elsevier Science (USA). All rights reserved. JEL classification: C91; D83

The paper surveys recent work on learning in games and delineates the boundary between forms of learning that lead to Nash equilibrium and forms that lead to weaker notions of equilibrium (or none at all). JEL Classification: C7, D83.

The mathematical framework of psychological game theory is useful for describing many forms motivation where preferences depend directly on one’s own or others’ beliefs. It allows incorporating, example, emotions, reciprocity, image concerns, and self-esteem in economic analysis. We explain how why, discussing basic theory, experiments, applied work, methodology. (JEL C70, D83, D91)