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Ingela Alger et Jörgen W. Weibull
n° 14-504, juin 2014, révision juin 2015
We provide a generalized definition of evolutionary stability of heritable types in arbitrarily large symmetric interactions under random matching that may be assortative. We establish stability results when these types are strategies in games, and when they are preferences or moral values in games...
Christophe Bernard, Marie-Françoise Calmette, Maureen Kilkenny, Catherine Loustalan et Isabelle Pechoux
n° 14-505, juin 2014
We show how a large country’s entrance on world markets can lead to lower and less quality diversity available to consumers rather than more. In our model, autarky quality is directly proportional to the willingness to pay for quality and home market size, and inversely proportional to the cost of...
José-Raimundo Carvalho, Thierry Magnac et Qizhou Xiong
n° 14-506, juin 2014
We evaluate a simple allocation mechanism of students to majors at college entry that was commonly used in universities in Brazil in the 1990s and 2000s. Students first chose a single major and then took exams that select them in or out of the chosen major. The literature analyzing student...
Guillaume Plantin et Huyn Shin
n° 14-512, juin 2014
We offer a model of currency carry trades in which carry traders earn positive excess returns if they successfully coordinate on supply- ing excessive capital to a target economy. The interest-rate differential between their funding currency and the target currency is their coor- dination device....
Bruno Biais, Florian Heider et Marie Hoerova
n° 14-522, juin 2014
Derivatives activity, motivated by risk-sharing, can breed risk taking. Bad news about the risk of the asset underlying the derivative increases the expected liability of a protection seller and undermines her risk prevention incentives. This limits risk-sharing, and may create endogenous...
Christian Gollier
n° 828, juin 2014, révision octobre 2014
Weitzman (1998, 2001) proposed a simple “gamma discounting” method to characterize the term structure of discount rates today from the sole distribution of future spot interest rates. This rule which justifies using a smaller discount rate for longer maturities is now used for long-term policy...
Patrick Fève et Ahmat Jidoud
Paris, vol. 113-114, juin 2014, p. 293–308
This paper assesses SVARs as relevant tools at identifying the aggregate effects of news shocks. When the econometrician and private agents’ information sets are not aligned, the dynamic responses identified from SVARs are biased. However, the bias vanishes when news shocks account for the bulk of...
Catarina Goulão et Agustín Pérez-Barahona
vol. 16, n° 3, juin 2014, p. 467–490
We introduce a theoretical framework that contributes to the understanding of non-communicable chronic diseases’ (NCDs) epidemics: even if NCDs are non-infectious diseases, they may spread due to the social transmission of unhealthy activities such as unhealthy diet, physical inactivity, and...
Elisabetta Iossa et Patrick Rey
vol. 12, n° 3, juin 2014, p. 549–574
We study how career concerns affect the dynamics of incentives in a multi-period contract, when the agent's productivity is a stochastic function of his past productivity and investment. We show that incentives are stronger and performance is higher when the contract approaches its expiry date....
Stefan Ambec, Alexis Garapin, Laurent Muller, Arnaud Reynaud et Carine Sebi
vol. 58, n° 2, juin 2014, p. 219–244
In a laboratory experiment we test three regulations imposed on a common-pool resource game with heterogeneous users: an access fee and subsidy scheme, transferable quotas and non-transferable quotas. We calibrate the game so that all regulations improve users’ profits compared to free-access...
