Related papers: Defaults: a double-edged sword in governing common…
The goal of this article is to investigate how human participants allocate their limited time to decisions with different properties. We report the results of two behavioral experiments. In each trial of the experiments, the participant…
Natural and human-made common goods present key challenges due to their susceptibility to degradation, overuse, or congestion. We explore the self-organisation of their usage when individuals have access to several available commons but…
We consider a large collection of dynamically interacting components defined on a weighted directed graph determining the impact of default of one component to another one. We prove a law of large numbers for the empirical measure capturing…
Previous research has demonstrated that natural language explanations provide valuable inductive biases that guide models, thereby improving the generalization ability and data efficiency. In this paper, we undertake a systematic…
The present paper introduces a structural framework to model dependent defaults, with a particular interest in their contagion.
Cooperative behavior, where one individual incurs a cost to help another, is a wide spread phenomenon. Here we study direct reciprocity in the context of the alternating Prisoner's Dilemma. We consider all strategies that can be implemented…
We extend well-known comparative results under expected utility to models of non-expected utility by providing novel conditions on local utility functions. We illustrate how our results parallel, and are distinct from, existing results for…
This paper develops a continuous-time filtering framework for estimating a hazard rate subject to an unobservable change-point. This framework naturally arises in both financial and insurance applications, where the default intensity of a…
Our wellbeing depends as much on our personal success, as it does on the success of our society. The realization of this fact makes cooperation a very much needed trait. Experiments have shown that rewards can elevate our readiness to…
An important question in economics is how people choose between different payments in the future. The classical normative model predicts that a decision maker discounts a later payment relative to an earlier one by an exponential function…
Cooperative behaviour has been extensively studied as a choice between cooperation and defection. However, the possibility to not participate is also frequently available. This type of problem can be studied through the optional public…
As AI assistants become commonplace in daily life, the demand for solutions that reduce the cost of inference without sacrificing utility is increasing. Existing work on AI sustainability frequently emphasizes hardware and software…
A system of non-tradable credits that flow between individuals like karma, hence proposed under that name, is a mechanism for repeated resource allocation that comes with attractive efficiency and fairness properties, in theory. In this…
In this paper, we study the effect of preferences in abstract argumentation under a claim-centric perspective. Recent work has revealed that semantical and computational properties can change when reasoning is performed on claim-level…
I study robust comparative statics for risk-averse subjective expected utility (SEU) maximizers. Starting with a finite menu of actions totally ordered by sensitivity to risk, I identify the transformations of her menu that lead a…
We study the combined influence of selection and random fluctuations on the evolutionary dynamics of two-strategy ("cooperation" and "defection") games in populations comprising cooperation facilitators. The latter are individuals that…
According to theoretical models of valuing risky corporate securities, risk of default is primary component in overall yield spread. However, sizable empirical literature considers it otherwise by giving more importance to non-default risk…
Cooperative behaviors are defined as the production of common goods benefitting all members of the community at the producer's cost. They could seem to be in contradiction with natural selection, as non-cooperators have an increased fitness…
Why do companies choose particular capital structures? A compelling answer to this question remains elusive despite extensive research. In this article, we use double machine learning to examine the heterogeneous causal effect of credit…
We study the evolution of cooperation in structured populations within popular models of social dilemmas, whereby simple coevolutionary rules are introduced that may enhance players abilities to enforce their strategy on the opponent.…