If the value of a commodity is unknown, a prospective buyer must realize that a bid based on an overestimate of its value is likely to be accepted. In this situation, merely finding out that one’s bid is accepted may cause one to reduce the estimate of a commodity’s value, so winning an auction can bring a feeling of regret. Acceptance of a bid is an informative event, and failure to incorporat...

Currently, evidence on the ‘resource curse’ yields a conundrum. While there is much crosssection evidence to support the curse hypothesis, time series analyses using vector autoregressive (VAR) models have found that commodity booms raise the growth of commodity exporters. This paper adopts panel cointegration methodology to explore longer term effects than permitted using VARs. We find strong ...

Stochastic programming deals with optimization under uncertainty. A stochastic programming problem with recourse is referred to as a two-stage stochastic problem. We consider the stochastic programming problem with simple integer recourse in which the value of the recourse variable is restricted to a multiple of a nonnegative integer. The algorithm of a dynamic slope scaling procedure to solve ...

Virtually every social interaction involves reasoning about the perspectives of others, or 'theory of mind (ToM).' Previous research suggests that it is difficult to ignore our current knowledge when reasoning about a more naïve perspective (i.e., the curse of knowledge). In this Mini Review, we discuss the implications of the curse of knowledge for certain aspects of ToM. Particularly, we exam...

This paper demonstrates that winning a takeover bidding contest can be `bad news' and, consequently, losing can be `good news.' This is true even when all bidders act rationally in their own best interests with perfect information on their valuations. Bidders with toeholds rationally bid above their valuations and possibly su er losses in equilibrium. This equilibrium strategy of `bidding to lo...