The trends and consequences of terrorist activities are often captured by counting the
number of incidents and casualties. More recently, the effects of terrorist acts on various …

Recent monetary models with explicit microfoundations are made tractable by assuming that
agents have access to centralized markets after one round of decentralized trade. Given …

World governance today is characterized by international organizations lacking democratic
legitimacy and control by the citizens they claim to represent. They are also criticized for …

We propose a dynamic model of neighbourhood watch schemes. While the state chooses
punishment levels, apprehension of criminals depends on the watchfulness of citizens. We …

We show that no solution to coalition formation games can satisfy a set of axioms that we
propose as reasonable. Our result points out that “solutions” to the coalition formation cannot …

The most influential theory of corporate governance, principal agency theory, does not take
into consideration that the key task of modern corporations is to generate and transfer firm …

Distortions in memory impose important bounds on rationality but have been largely
disregarded in economics. While it is possible to learn, it is more difficult, and sometimes …

Risk management and asset pricing benefit from simple functional descriptions of the
distribution of real asset returns. Recently, several authors have proposed that asset returns …

Base-rate neglect is a robust experimental finding that individuals do not update their prior
beliefs according to the Bayes' rule and, typically, underestimate their posterior probabilities …