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Takuro Yamashita et Takeshi Murooka
septembre 2022
We consider an adverse selection environment between an informed seller and an uninformed buyer, where no trade occurs when all buyers are the standard Bayesian-rational type. The buyer may be a “behavioral” type in that he may take actions different from the rational type. We show that, for any...
Eduardo Abi Jaber et Stéphane Villeneuve
n° 22-1363, septembre 2022
Can a principal still offer optimal dynamic contracts that are linear in end-of-period outcomes when the agent controls a process that exhibits memory? We provide a positive answer by considering a general Gaussian setting where the output dynamics are not necessarily semi-martingales or Markov...
Manvir Singh
n° 31, septembre 2022, p. 266–280
Why is culture the way it is? Here I argue that a major force shaping culture is subjective (cultural) selection, or the selective retention of cultural variants that people subjectively perceive as satisfying their goals. I show that people evaluate behaviors and beliefs according to how useful...
Manvir Singh et Luke Glowacki
vol. 43, septembre 2022, p. 418–431
Many researchers assume that until 10–12,000 years ago, humans lived in small, mobile, relatively egalitarian bands. This “nomadic-egalitarian model” suffuses the social sciences. It informs evolutionary explanations of behavior and our understanding of how contemporary societies differ from those...
Tuba Tuncel
n° 22-1383, septembre 2022
After a drug obtains marketing authorization, the usage depends on the regulation of off-label pre-scriptions for unapproved indications. We investigate the impact of off-label prescription regulation on physicians’ behavior, patients’ health, treatment costs, and pharmaceutical firms’ pricing with...
Charlotte Cavaillé et Karine Van Der Straeten
n° 22-1358, septembre 2022
Research shows that opposition to policies that redistribute across racial divides has affected the development of the American welfare state. Are similar dynamics at play in Western Europe? For many scholars, the answer is yes. In contrast, we argue that researchers’ understanding of the political...
James K. Hammitt
n° 22-1359, septembre 2022
Downside risk aversion (downside RA) and decreasing absolute risk aversion (DARA) are different concepts that describe preferences for which the harm from bearing risk is lessened by an increase in wealth. This note presents some intuitive explanations of the difference between the two concepts...
Chiara Canta et Helmuth Cremer
n° 2022-1352, août 2022
We study the optimal long-term care policy when informal care can be provided by children in exchange for monetary transfers by their elderly parents. We consider a bargaining model with single-child families. Daughters have a lower labor market wage and a lower bargaining power within the family...
Helmuth Cremer et Catherine Muller-Vibes
n° 2022-1353, août 2022
In the first part, we examine from a theoretical perspective how the cost of the mission of postal transport and delivery of newspapers should be defined and by which factors it is determined. In particular we show that a crucial ingredient in the determination of this cost is the variation in...
Ingela Alger
n° 22-144, août 2022, révision décembre 2022
The 50-year old definition of an evolutionarily stable strategy provided a key tool for theorists to model ultimate drivers of behavior in social interactions. For decades economists ignored ultimate drivers and used models in which individuals choose strate-gies based on their preferences. This...
