System reliability often depends on the effort of many individuals, making reliability a public good. It is well-known that purely voluntary provision of public goods may result in a free rider problem: individuals may tend to shirk, resulting in an inefficient level of the public good. How much effort each individual exerts will depend on his own benefits and costs, the efforts exerted by the ...

We study the formation of cartels within two di¤erent contexts. First, we consider internal-external stability based models which, due to …rms’ free-riding incentives, lead to the inexistence of stable cartels. Second, we introduce the dynamic aspect of coalition formation. That is, when considering a cartel we consider also any cartel that can be reached through a succession of moves. Despite ...

Criticism of contingent valuation (CV) stresses warm glow and free-riding as possible causes for biased willingness to pay figures. We present an empirical framework to study the existence of warm glow and free-riding in hypothetical WTP answers based on a CV survey for the measurement of health-related Red Cross services. Both in conventional double-bounded and spike models we do not find indi...

Abstract This article considers a class of experimentation games with Lévy bandits encompassing those Bolton and Harris (1999, Econometrica, 67, 349–374) Keller, Rady, Cripps (2005, 73, 39–68). Its main result is that efficient (perfect Bayesian) equilibria exist whenever players’ payoffs have diffusion component. Hence, the trade-offs emphasized in literature do not rely on intrinsic nature ba...

Schizophrenia is generally characterized by various positive and negative symptoms that are accompanied by significant social dysfunction. Various researchers investigated the functional impairments in schizophrenia including impaired theory of mind (TOM), poor integration of affective and cognitive information, and malfunctioning of adaptive and strategic learning process. However, most of the...