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Harun Onder, Pierre Pestieau, and Grégory Ponthieres

vol. 91, n. 2, June 2025, pp. 210–239, 30 pages

We examine the effects of the postulated metric on the measurement of well-being, by comparing, in the (income, lifetime) space, two indexes: the equivalent income index and the equivalent lifetime index. The conditions under which the equivalent lifetime index exists are more restrictive than the...

Alexandros Gelastopoulos, Lucas Sage, and Arnout van de Rijt

vol. 122(23), n. e2408163122, June 2025

Inequality in outcomes may emerge through a reinforcement process in which stochastic variation in values is determined by prior values but may also originate in preexisting differences in unobserved factors. A common approach toward differentiating between these origins in longitudinal data is to...

Benoît Chevalier-Roignant, Stéphane Villeneuve, Fabien Delpech, and May-Line Grapotte

vol. 175, n. 105098, June 2025

There are many business situations in which investments by a supplier and a producer (“coinvest-ments") are both necessary for either of them to grasp a business opportunity. For instance, better quality tanks are needed to manufacture reliable hydrogen-powered vehicles. One of these two firms,...

Elia Lapenta, and Pascal Lavergne

vol. 41, n. 3, June 2025, pp. 709–738

We set up a formal framework to characterize encompassing of nonparametric models through the distance. We contrast it to previous literature on the comparison of nonparametric regression models. We then develop testing procedures for the encompassing hypothesis that are fully nonparametric. Our...

Michele Bisceglia, and Salvatore Piccolo

vol. 56, n. 2, June 2025, pp. 216–230

We study a two-period industry where firms are run by agents privately informed about their (persistent) costs, and principals can only use spot contracts. We characterize novel semi-separating equilibria where principals randomize in one or both periods. These equilibria have the following...

Farid Gasmi, Laura Recuero Virto, and Denis Couvet

vol. 40, n. 1-2, June 2025, pp. 1–45

This paper analyzes the determinants of economic growth in coastal countries and discusses their potential consequences on mangrove blue carbon (BC). We use a Bayesian averaging of classical estimates technique to fit models reflecting alternative theories to 1960–2009 data on 23 specific coastal...

Marion Hoffman, Christoph Stadtfeld, and Timon Elmer

vol. 88, n. 2, June 2025, p. 249–270

Dyadic isolation is the tendency of some individuals to be involved in pairwise interactions rather than in larger group interactions. This article investigates the interpersonal processes associated with the dyadic isolation of individuals with depressive symptoms. We hypothesize that such...

Marianne Andries, Milo Bianchi, Karen Huynh, and Sébastien Pouget

vol. 38, n. 6, June 2025, p. 1687–1729

In an investment experiment, we show variations in information affect belief and decision behaviors within the information-beliefs-decisions chain. Subjects observe the time series of a risky asset and a signal that, in random rounds, helps predict returns. When they perceive the signal as useless...

Catherine Bobtcheff, Raphaël Lévy, and Thomas Mariotti

vol. 56, n. 2, June 2025, pp. 145–162

Firms receiving independent signals on a common-value risky project compete to be the first to invest. When firms are symmetric and competition is winner-take-all, rents are fully dissipated in equilibrium and the extent to which signals are publicly disclosed is irrelevant for welfare. When...

Céline Bonnet, Zohra Bouamra-Mechemache, and Hugo Molina

vol. 56, n. 2, June 2025, pp. 194–215

We develop a bilateral oligopoly framework with manufacturer-retailer bargaining to analyze the impact of retail mergers on market outcomes. We show that the surplus division between manufacturers and retailers depends on three bargaining forces and can be interpreted in terms of an “equilibrium of...