We use data on a movie’s stock price as it trades on the Hollywood Stock Exchange, a popular online market simulation, to study the impact of movie advertising. We find that advertising has a positive and statistically significant effect on expected revenues, but that the effect varies strongly across movies of different ‘‘quality’’. The point estimate implies that the returns to advertising fo...

Thinking about contingencies, designing covenants and seeing through their implications is costly. Parties to a contract accordingly use heuristics and leave it incomplete. The paper develops a model of bounded rationality and examines its consequences for contractual design. It is argued that cognition is a natural source of adverse selection in contractual relationships, that contracts may be...

In many situations the individuals who can generate some output must enter a contest for appropriating this output. This paper analyses the investment incentives of such agents and the role of incumbency advantages in the contest. Depending on the advantages, an increase in the productivity of the investment can decrease or increase the amount of investment. The results are applied to autocrats...

This paper presents synthetically some recent developments in the theory of coalition and network formation. For this purpose, some major equilibrium concepts recently introduced to model the formation of coalition structures and networks among players are brie‡y reviewed and discussed. A few economic applications are also illustrated to give a ‡avour of the type of predictions such models are ...

This paper studies a cheap talk model in which two senders having partial and non-overlapping private information simultaneously communicate with an uninformed receiver. The sensitivity of the receiver’s ideal action to one sender’s private information depends on the other sender’s private information. We show that the senders’information transmissions exhibit strategic complementarity: more in...

Bester and Strausz (2000) showed that the revelation principle of Bester and Strausz (2001) does not apply in a setting of many agents and no commitment. In their counterexample only one agent has private information. We show that if the parties can make ex ante transfers the revelation principle does extend to this setting. However, we show that it does not extend to a setting in which more th...

This paper studies organizations in which participants have common preferences but communication is costly. In this model, use words to describe similar information, but need not use precise words for frequent events and vague words for unusual ones. The model identifies a source of communication failure across units. It provides an argument for giving the best-informed agents decision-making a...

The study aimed to compare the welfare and performance of sows piglets in three different farrowing systems (farrowing crate (FC) pen with temporary crating (TC): SWAP JLF15). One batch crossbred Duroc was followed every season. There were 18 (183 piglets) FC, 23 (243 SWAP, (237 JLF15. Farrowing day Day (D) 0 weaning occurred on D24. Crating period from entry 1-day pre-expected D3 TC. Social in...

Zones were cut from gels run in 0.1 % Triton X-100 put in the ‘starting’ position on the surfaces of fresh gels and refocused. In every case, the proteins moved to positions equivalent to those they had originally occupied in the first gel. The band patterns of plasma membranes of hepatoma D23 and the normal rat hepatocyte were highly characteristic, with many bands common to preparations from ...