In this paper, we experimentally investigate the extended game with action commitment of Hamilton and Slutsky (1990). In their duopoly game, ...rms can choose their quantities in one of two periods before the market clears. If a ...rm commits to a quantity in period 1 it does not know whether the other ...rm also commits early. By waiting until period 2, a ...rm can observe the other ...rm’s pe...

We extend classical consumer theory to account for reference dependence and loss aversion under complete certainty. The classical results obtain as a special case. Several new results emergethere is a kink in the demand curve at the reference point, consumers are subject to money illusion, and some kinds of inconsistencies of preferences can be accounted for. However, the reference dependent mo...

An important goal of empirical demand analysis is choice and welfare prediction on counterfactual budget sets arising from potential policy interventions. Such predictions are more credible when made without arbitrary functional?form/distributional assumptions, instead based solely economic rationality, that is, consistent with utility maximization by a heterogeneous population. This paper inve...

Some MIT researchers [Phys. Rev. A 75, 042327 (2007)] have recently claimed that their implementation of the Slutsky-Brandt attack [Phys. Rev. A 57, 2383 (1998); Phys. Rev. A 71, 042312 (2005)] to the BB84 quantum-key-distribution (QKD) protocol puts the security of this protocol “to the test” by simulating “the most powerful individual-photon attack” [Phys. Rev. A 73, 012315 (2006)]. A related...

In a novel approach to model the demand for children's screen time as result of parent's optimal labor-leisure choice, study used simple parental utility maximization subject money and budget constraints derive Marshallian functions two types child upbringing activities: time-intensive (violin lesson) time-saving (video games). After Slutsky decomposition, was shown be similar Giffen good. Usin...