TY - GEN AB - We study the consequences of modeling asymmetric bargaining power in two-person bargaining problems. Comparing application of an asymmetric version of a bargaining solution to an upfront modification of the disagreement point, the resulting distortion crucially depends on the bargaining solution concept. While for the Kalai-Smorodinsky solution weaker players benefit from modifying the disagreement point, the situation is reversed for the Nash bargaining solution. There, weaker players are better off in the asymmetric bargaining solution. When comparing application of the asymmetric versions of the Nash and the Kalai-Smorodinsky solutions, we demonstrate that there is an upper bound for the weight of a player, so that she is better off with the Nash bargaining solution. This threshold is ultimately determined by the relative utilitarian bargaining solution. From a mechanism design perspective, our results provide valuable information for a social planner, when implementing a bargaining solution for unequally powerful players. AU - Haake, Claus-Jochen AU - Streck, Thomas ID - 32106 KW - Asymmetric bargaining power KW - Nash bargaining solution KW - Kalai-Smorodinsky bargaining solution TI - Distortion through modeling asymmetric bargaining power VL - 148 ER - TY - JOUR AU - Hoyer, Britta AU - De Jaegher, Kris ID - 31881 JF - International Journal of Game Theory TI - Network Disruption and the Common-Enemy Effect ER - TY - JOUR AB - AbstractNon-pharmaceutical interventions are an effective strategy to prevent and control COVID-19 transmission in the community. However, the timing and stringency to which these measures have been implemented varied between countries and regions. The differences in stringency can only to a limited extent be explained by the number of infections and the prevailing vaccination strategies. Our study aims to shed more light on the lockdown strategies and to identify the determinants underlying the differences between countries on regional, economic, institutional, and political level. Based on daily panel data for 173 countries and the period from January 2020 to October 2021 we find significant regional differences in lockdown strategies. Further, more prosperous countries implemented milder restrictions but responded more quickly, while poorer countries introduced more stringent measures but had a longer response time. Finally, democratic regimes and stronger manifested institutions alleviated and slowed down the introduction of lockdown measures. AU - Redlin, Margarete ID - 33221 JF - Journal of Regulatory Economics KW - Economics and Econometrics SN - 0922-680X TI - Differences in NPI strategies against COVID-19 ER - TY - JOUR AB - AbstractWe provide a partial equilibrium model wherein AI provides abilities combined with human skills to provide an aggregate intermediate service good. We use the model to find that the extent of automation through AI will be greater if (a) the economy is relatively abundant in sophisticated programs and machine abilities compared to human skills; (b) the economy hosts a relatively large number of AI-providing firms and experts; and (c) the task-specific productivity of AI services is relatively high compared to the task-specific productivity of general labor and labor skills. We also illustrate that the contribution of AI to aggregate productive labor service depends not only on the amount of AI services available but on the endogenous number of automated tasks, the relative productivity of standard and IT-related labor, and the substitutability of tasks. These determinants also affect the income distribution between the two kinds of labor. We derive several empirical implications and identify possible future extensions. AU - Gries, Thomas AU - Naudé, Wim ID - 33220 IS - 1 JF - Journal for Labour Market Research KW - General Medicine SN - 2510-5019 TI - Modelling artificial intelligence in economics VL - 56 ER - TY - JOUR AU - Gries, Thomas AU - Müller, Veronika AU - Jost, John T. ID - 33219 IS - 2 JF - Psychological Inquiry KW - General Psychology SN - 1047-840X TI - The Market for Belief Systems: A Formal Model of Ideological Choice VL - 33 ER - TY - GEN AB - We study the effects of product differentiation on the bundling incentives of a two-product retailer. Two monopolistic manufacturers each produce a differentiated good. One sells it to both retailers, while the other only supplies a single retailer. Retailers compete in prices. Retail bundling is profitable when the goods are close substitutes. Only then is competition so intense that the retailer uses bundling to relax competition both within and across product markets, despite an aggravation of the double marginalization problem. Our asymmetric market structure arises endogenously for the case of close substitutes. In this case, bundling reduces social welfare. AU - Endres-Fröhlich, Angelika Elfriede AU - Hehenkamp, Burkhard AU - Heinzel, Joachim ID - 44091 KW - Retail bundling KW - upstream market power KW - double marginalization KW - product differentiation TI - The Impact of Product Differentiation on Retail Bundling in a Vertical Market ER - TY - GEN AU - N., N. ID - 42326 TI - Manipulation durch Fake-Bewertungen: Einfluss von Such- und Erfahrungsgütern auf das manipulative Verhalten des Verkäufers ER - TY - GEN AU - N., N. ID - 42322 TI - An Analysis of Coalition Formation Methods to achieve Maximum Social Surplus ER - TY - GEN AU - N., N. ID - 42324 TI - Die Möglichkeiten der Blockchain-Technologie im Supply Chain Management - eine spieltheoretische Analyse ER - TY - GEN AU - N., N. ID - 42318 TI - Kindergarten Allocation and the Tradeoff between Stability and Diversity Considerations ER - TY - GEN AU - N., N. ID - 42319 TI - Effect of the Agent's bargaining positions in the efficiency of matching markets ER - TY - GEN AU - N., N. ID - 42323 TI - Stabile Zuordnung mit Paaren - Der neue NRMP Algorithmus ER - TY - GEN AU - N., N. ID - 42320 TI - School choice with reserves and quotas ER - TY - GEN AU - N., N. ID - 42325 TI - Organisation von Zeitbörsen ER - TY - JOUR AB - We analyse the two-dimensional Nash bargaining solution (NBS) by deploying the standard labour market negotiations model of McDonald and Solow (1981). We show that the two-dimensional bargaining problem can be decomposed into two one-dimensional problems, such that the two solutions together replicate the solution of the two-dimensional problem if the NBS is applied. The axiom of Independence of Irrelevant Alternatives is shown to be crucial for this type of decomposability. This result has significant implications for actual negotiations because it allows for the decomposition of a multi-dimensional bargaining problem into one-dimensional problems---and thus helps to facilitate real-world negotiations. AU - Haake, Claus-Jochen AU - Upmann, Thorsten AU - Duman, Papatya ID - 30940 IS - 2 JF - Scandinavian Journal of Economics KW - Labour market negotiations KW - efficient bargains KW - Nash bargaining solution KW - sequential bargaining KW - restricted bargaining games TI - Wage Bargaining and Employment Revisited: Separability and Efficiency in Collective Bargaining VL - 125 ER - TY - JOUR AB - We study the effect of unemployment on cognitive abilities among individuals aged between 50 and 65 in Europe. To this end, we exploit plant closures and use flexible event-study estimations together with an experimentally elicited measure of fluid intelligence, namely word recall. We find that, within a time period of around eight years after the event of unemployment, cognitive abilities only deteriorate marginally — the effects are insignificant both in statistical and economic terms. We do, however, find significant effects of late-career unemployment on the likelihood to leave the labor force, and short-term effects on mental health problems such as depression and sleep problems. AU - Freise, Diana AU - Schmitz, Hendrik AU - Westphal, Matthias ID - 33458 JF - Journal of Health Economics TI - Late-Career Unemployment and Cognitive Abilities VL - 86 ER - TY - JOUR AU - Westphal, Matthias AU - Kamhöfer, Daniel A. AU - Schmitz, Hendrik ID - 30235 IS - 646 JF - Economic Journal TI - Marginal College Wage Premium under Selection into Employment VL - 132 ER - TY - JOUR AB - In this paper, we analyze the effect of light conditions on road accidents and estimate the long run consequences of different time regimes for road safety. Identification is based on variation in light conditions induced by differences in sunrise and sunset times across space and time. We estimate that darkness causes annual costs of more than £500 million in Great Britain. By setting daylight saving time year-round 8 percent of these costs could be saved. Thus, focusing solely on the short run costs related to the transition itself underestimates the total costs of the current time regime. AU - Bünnings, Christian AU - Schiele, Valentin ID - 15073 IS - 1 JF - The Review of Economics and Statistics SN - 0034-6535 TI - Spring Forward, Don't Fall Back: The Effect of Daylight Saving Time on Road Safety VL - 103 ER - TY - JOUR AB - AbstractIn this article we combine Debreu’s (Proc Natl Acad Sci 38(10):886–893, 1952) social system with Hurwicz’s (Econ Design 1(1):1–14, 1994; Am Econ Rev 98(3):577–585, 2008) ideas of embedding a “desired” game form into a “natural” game form that includes all feasible behavior, even if it is “illegal” according to the desired form. For the resulting socio-legal system we extend Debreu’s concepts of a social system and its social equilibria to a socio-legal system with its Debreu–Hurwicz equilibria. We build on a more general version of social equilibrium due to Shafer and Sonnenschein (J Math Econ 2(3):345–348, 1975) that also generalizes the dc-mechanism of Koray and Yildiz (J Econ Theory 176:479–502, 2018) which relates implementation via mechanisms with implementation via rights structures as introduced by Sertel (Designing rights: invisible hand theorems, covering and membership. Tech. rep. Mimeo, Bogazici University, 2001). In the second part we apply and illustrate these new concepts via an application in the narrow welfarist framework of two person cooperative bargaining. There we provide in a socio-legal system based on Nash’s demand game an implementation of the Nash bargaining solution in Debreu–Hurwicz equilibrium. AU - Haake, Claus-Jochen AU - Trockel, Walter ID - 29152 JF - Review of Economic Design SN - 1434-4742 TI - Socio-legal systems and implementation of the Nash solution in Debreu–Hurwicz equilibrium ER - TY - JOUR AB - AbstractUsing data from the German Socio-Economic Panel for 1984–2018, we analyze the intergenerational education mobility of immigrants in Germany by identifying the determinants of differences in educational stocks for first- and second-generation immigrants in comparison to individuals without a migration background. Our results show that on average, first-generation immigrants have fewer years of schooling than native-born Germans and have a disproportionate share of lower educational qualifications. This gap is strongly driven by age at immigration, with immigration age and education revealing a nonlinear relationship. While the gap is relatively small among individuals who migrate at a young age, integrating in the school system at secondary school age leads to large disadvantages. Examining the educational mobility of immigrants in Germany, we identify an inter-generational catch-up in education. The gap in education between immigrants and natives is reduced for the second generation. Finally, we find that country of origin differences can account for much of the education gap. While immigrants with an ethnic background closer to the German language and culture show the best education outcomes, immigrants from Turkey, Italy, and other southern European countries and especially the group of war refugees from Syria, Afghanistan, Iraq and other MENA countries, have the lowest educational attainment. AU - Gries, Thomas AU - Redlin, Margarete AU - Zehra, Moonum ID - 22715 JF - Journal of International Migration and Integration SN - 1488-3473 TI - Educational Assimilation of First-Generation and Second-Generation Immigrants in Germany ER - TY - JOUR AB - AbstractUsing time series data for the period 1959–2015, our empirical analysis examines the simultaneous effects of the individual components of the global carbon budget on temperature. Specifically, we explore the possible effects of carbon emissions caused by fossil fuel combustion, cement production, land-use change emissions, and carbon sinks (here in terms of land sink and ocean sink) on climate change. The simultaneous inclusion of carbon emissions and carbon sinks allows us to look at the coexistent and opposing effects of the individual components of the carbon budget and thus provides a holistic perspective from which to explore the relationship between the global carbon budget and global warming. The results reveal a significant positive effect of carbon emissions on temperature for both fossil fuels emissions and emissions from land-use change, confirming previous results concerning carbon dioxide and temperature. Further, while ocean sink does not seem to have a significant effect, we identify a temperature-decreasing effect for land sink. AU - Redlin, Margarete AU - Gries, Thomas ID - 23594 JF - Theoretical and Applied Climatology SN - 0177-798X TI - Anthropogenic climate change: the impact of the global carbon budget ER - TY - GEN AU - N., N. ID - 42317 TI - Die Aufteilung der Barentsseegebiete mithilfe des Adjusted Winner Verfahrens bei asymmetrischen Machtverhältnissen ER - TY - GEN AU - N., N. ID - 42315 TI - Versionisierung von Serviceleistungen auf Videoplattformen ER - TY - GEN AU - N., N. ID - 42321 TI - Kindergarten Allocation through Matching Mechanisms ER - TY - GEN AU - N., N. ID - 42309 TI - Faire Profitverteilung in Energienetzwerken - eine spieltheoretische Analyse von Microgrids ER - TY - GEN AU - N., N. ID - 42311 TI - "First-Party-Content" auf zweiseitigen Märkten ER - TY - GEN AU - N., N. ID - 42314 TI - Stability in many-to-many matchings with contracts ER - TY - GEN AU - N., N. ID - 42313 TI - Preissetzungsstrategien für Neuprodukte ER - TY - GEN AU - N., N. ID - 42310 TI - Co-opetition in Two-Sided Markets ER - TY - GEN AU - N., N. ID - 42312 TI - Matching mit Minderheiten ER - TY - GEN AU - N., N. ID - 42316 TI - Piracy and Visioning ER - TY - GEN AU - N., N. ID - 42303 TI - Revenue Sharing Contracts: Horizontale Koordination in der E-Commerce-Logistik ER - TY - JOUR AB - I study a dynamic variant of the Dixit–Stiglitz (Am Econ Rev 67(3), 1977) model of monopolistic competition by introducing price stickiness à la Fershtman and Kamien (Econometrica 55(5), 1987). The analysis is restricted to bounded quantity and price paths that fulfill the necessary conditions for an open-loop Nash equilibrium. I show that there exists a symmetric steady state and that its stability depends on the degree of product differentiation. When moving from complements to perfect substitutes, the steady state is either a locally asymptotically unstable (spiral) source, a stable (spiral) sink or a saddle point. I further apply the Hopf bifurcation theorem and prove the existence of limit cycles, when passing from a stable to an unstable steady state. Lastly, I provide a numerical example and show that there exists a stable limit cycle. AU - Hoof, Simon ID - 45640 IS - 2 JF - Journal of Optimization Theory and Applications SN - 1573-2878 TI - Dynamic Monopolistic Competition VL - 189 ER - TY - GEN AB - Individual cognitive functioning declines over time. We seek to understand how adverse physical health shocks in older ages contribute to this development. By use of event-study methods and data from the USA, England and several countries in Continental Europe we find evidence that health shocks lead to an immediate and persistent decline in cognitive functioning. This robust finding holds in all regions representing different health insurance systems and seems to be independent of underlying individual demographic characteristics such as sex and age. We also ask whether variables that are susceptible to policy action can reduce the negative consequences of a health shock. Our results suggest that neither compulsory education nor retirement regulations moderate the effects, thus emphasizing the importance of maintaining good physical health in old age for cognitive functioning. AU - Schiele, Valentin AU - Schmitz, Hendrik ID - 46540 KW - Cognitive decline KW - health shocks KW - retirement KW - education KW - event study TI - Understanding cognitive decline in older ages: The role of health shocks VL - 919 ER - TY - GEN AB - We study effects of retirement on cognitive abilities (up to ten years after retirement) using data from 21 countries in Continental Europe, England, and the US, and exploiting early-retirement thresholds for identification. For this purpose, combines event-study estimations with the marginal treatment effect framework to allow for effect heterogeneity. This helps to decompose event-study estimates into true medium-run effects of retirement and effects driven by differential retirement preferences. Our results suggest considerable negative effects of retirement on cognitive abilities. We also detect substantial effect heterogeneity: Those who retire as early as possible are not affected while those who retire later exhibit negative effects. AU - Schmitz, Hendrik AU - Westphal, Matthias ID - 46537 KW - Cognitive abilities KW - retirement KW - event study KW - marginal treatment effects TI - The dynamic and heterogeneous effects of retirement on cognitive decline VL - 918 ER - TY - CONF AU - Krauter, Stefan AU - Böcker, Joachim AU - Freitag, Christine AU - Hehenkamp, Burkhard AU - Hilleringmann, Ulrich AU - Temmen, Katrin AU - Klaus, Tobias AU - Rohrer, Nicolaus AU - Lehmann, Sven ID - 22218 KW - Art-D KW - Afrika KW - Resilienz KW - Resilience KW - Grid stability KW - robustness KW - microgrids SN - 978-3-948176-14-3 T2 - Tagungsband des 36. PV-Symposiums, 18.-26 Mai 2021 TI - Projekt Art-D Grids: Nachhaltige und stabile Microgrids in Afrika - eine Plattform für Forschung und Lehre für die Entwicklung ER - TY - JOUR AU - Feng, Yuanhua AU - Gries, Thomas AU - Fritz, Marlon ID - 17072 JF - Journal of Nonparametric Statistics SN - 1048-5252 TI - Data-driven local polynomial for the trend and its derivatives in economic time series ER - TY - JOUR AU - Gries, Thomas AU - Grundmann, Rainer ID - 17074 JF - Review of Development Economics SN - 1363-6669 TI - Modern sector development: The role of exports and institutions in developing countries ER - TY - JOUR AB - This study examines the gender gap in competitiveness in an educational setting and tests whether this gap depends on the difficulty of the task at hand. For this purpose, we administered a series of experiments during the final exam of a university course. We confronted three cohorts of undergraduate students with a set of bonus questions and the choice between an absolute and a tournament grading scheme for these questions. To test the moderating impact of task difficulty, we (randomly) varied the difficulty of the questions between treatment groups. We find that, on average, women are significantly less likely to select the tournament scheme. However, the results show that the gender gap in tournament entry is sizable when the questions are relative easy, but much smaller and statistical insignificant when the questions are difficult. AU - Hoyer, Britta AU - van Huizen, Thomas AU - Keijzer, Linda AU - Rezaei, Sarah AU - Rosenkranz, Stephanie AU - Westbrock, Bastian ID - 16273 JF - Labour Economics TI - Gender, competitiveness, and task difficulty: Evidence from the field ER - TY - JOUR AB - We analyze the actual behavior of agents in a matching mechanism, using data from a clearinghouse at the Faculty of Business Administration and Economics at a German university, where a variant of the Boston mechanism is used. We supplement this data with data generated in a survey among the students who participated in the clearinghouse. We find that under the current mechanism over 74% of students act strategically by misrepresenting at least one of their preferences. Nevertheless, not all students are able to improve their outcome by doing so. We show that this is mainly due to the incomplete information of students and naiveté. Sophisticated students actually reach significantly better outcomes than naive students. Thus, we find evidence that naive students are exploited by sophisticated students in an incomplete information setting. AU - Hoyer, Britta AU - Stroh-Maraun, Nadja ID - 16334 JF - Games and Economic Behavior TI - Matching Strategies of Heterogeneous Agents under Incomplete Information in a University Clearinghouse VL - 121 ER - TY - JOUR AU - Schmitz, Hendrik AU - Stroka‐Wetsch, Magdalena A. ID - 30234 IS - 7 JF - Health Economics KW - Health Policy SN - 1057-9230 TI - Determinants of nursing home choice: Does reported quality matter? VL - 29 ER - TY - JOUR AB - Much work on innovation strategy assumes or theorizes that competition in innovation elicits duplication of research and that disclosure decreases such duplication. We validate this empirically using the American Inventors Protection Act (AIPA), three complementary identification strategies, and a new measure of blocked future patent applications. We show that AIPA—intended to reduce duplication, through default disclosure of patent applications 18 months after filing—reduced duplication in the U.S. and European patent systems. The blocking measure provides a clear and micro measure of technological competition that can be aggregated to facilitate the empirical investigation of innovation, firm strategy, and the positive and negative externalities of patenting. This paper was accepted by Joshua Gans, business strategy. AU - Lück, Sonja AU - Balsmeier, Benjamin AU - Seliger, Florian AU - Fleming, Lee ID - 31802 IS - 6 JF - Management Science KW - Management Science and Operations Research KW - Strategy and Management SN - 0025-1909 TI - Early Disclosure of Invention and Reduced Duplication: An Empirical Test VL - 66 ER - TY - JOUR AU - Haake, Claus-Jochen AU - Trockel, Walter ID - 34115 IS - 1-2 JF - Homo Oeconomicus KW - Industrial and Manufacturing Engineering KW - Environmental Engineering SN - 0943-0180 TI - Introduction to the Special Issue “Bargaining” VL - 37 ER - TY - JOUR AB - Many countries have opened their health care markets to private for-profit providers, aiming to promote quality and choice for patients. The prices are regulated and providers compete in location and quality. We show that whereas opening a public hospital market typically raises quality, the private provider strategically locates towards the corner of the market to avoid costly quality competition. Social welfare depends on the size of the regulator's budget and on the altruism of the public provider. If the budget is large, high quality results and welfare is highest in a duopoly whenever entry is optimal. If the budget is small, quality levels in a duopoly mirror the quality level in a monopoly. It can be optimal for the regulator not to use the full budget. AU - Hehenkamp, Burkhard AU - Kaarbøe, Odvar M. ID - 17350 JF - Journal of Economic Behavior & Organization TI - Location Choice and Quality Competition in Mixed Hospital Markets VL - 177 ER - TY - JOUR AU - Gries, Thomas AU - Redlin, Margarete ID - 17086 JF - International Economics and Economic Policy SN - 1612-4804 TI - Trade and economic development: global causality and development- and openness-related heterogeneity VL - 17 ER - TY - GEN AU - N., N. ID - 42278 TI - Zuordnungsverfahren für Tauschbörsen ER - TY - GEN AU - N., N. ID - 42307 TI - Weitsichtigkeit zur Bildung stabiler Koalitionen - eine spieltheoretische Analyse ER - TY - GEN AU - N., N. ID - 42308 TI - Verhandeltes strategisches Verhalten ER - TY - GEN AU - N., N. ID - 42301 TI - Kronzeugenprogramme zur Aufdeckung von Kartellen - Eine spieltheoretische Analyse ER - TY - GEN AU - N., N. ID - 42299 TI - Eine ökonomische Analyse der Piraterie in zweiseitigen Softwaremärkten ER - TY - GEN AU - N., N. ID - 42304 TI - Kulturelle Unterschiede beim Lösen von Verhandlungsproblemen ER - TY - GEN AU - N., N. ID - 42298 TI - Productivity optimization through project matching ER - TY - GEN AU - N., N. ID - 42306 TI - Matching Mechanisms and Organ Exchange ER - TY - GEN AU - N., N. ID - 42300 TI - Cartel Fines in the European Union ER - TY - GEN AU - N., N. ID - 42302 TI - Anspruchsregeln in Verhandlungen ER - TY - GEN AU - N., N. ID - 42292 TI - Die Zusammenstellung eines Sortiments als Beispiel interdependenter Verhandlungen ER - TY - GEN AU - N., N. ID - 42294 TI - Matching in Netzwerken ER - TY - GEN AB - Theoretical papers show that optimal prevention decisions in the sense of selfprotection (i.e., primary prevention) depend not only on the level of (second-order) risk aversion but also on higher-order risk preferences such as prudence (third-order risk aversion). We study empirically whether these theoretical results hold and whether prudent individuals show less preventive (self-protection) effort than non-prudent individuals. We use a unique dataset that combines data on higher-order risk preferences and various measures of observed real-world prevention behavior. We find that prudent individuals indeed invest less in self-protection as measured by influenza vaccination. This result is driven by high risk individuals such as individuals >60 years of age or chronically ill. We do not find a clear empirical relationship between riskpreferences and prevention in the sense of self-insurance (i.e. secondary prevention). Neither risk aversion nor prudence is related to cancer screenings such as mammograms, Pap smears or X-rays of the lung. AU - Mayrhofer, Thomas AU - Schmitz, Hendrik ID - 46541 KW - prudence KW - risk preferences KW - prevention KW - vaccination KW - screening TI - Prudence and prevention: Empirical evidence VL - 863 ER - TY - JOUR AU - Gries, Thomas AU - Jungblut, Stefan AU - Krieger, Tim AU - Meyer, Henning ID - 2808 IS - 2 JF - German Economic Review TI - Economic Retirement Age and Lifelong Learning - a theoretical model with heterogeneous labor and biased technical change VL - 20 ER - TY - JOUR AB - We investigate the degree of price competition among telecommunication firms. Underlying a Bertrand model of price competition, we empirically model pricing behaviour in an oligopoly. We analyse panel data of individual pricing information of mobile phone contracts offered between 2011 and 2017. We provide empirical evidence that price differences as well as reputational effects serve as a signal to buyers and significantly affect market demand. Additionally, we find that brands lead to an increase in demand and thus are able to generate spillover effects even after price increase. AU - Kaimann, Daniel AU - Hoyer, Britta ID - 1139 IS - 1 JF - Applied Economics Letters TI - Price competition and the Bertrand model: The paradox of the German mobile discount market VL - 26 ER - TY - JOUR AB - Social psychology studies the "common enemy effect", the phenomenon that members of a group work together when they face an opponent, although they otherwise have little in common. An interesting scenario is the formation of an information network where group members individually sponsor costly links. Suppose that ceteris paribus, an outsider appears who aims to disrupt the information flow within the network by deleting some of the links. The question is how the group responds to this common enemy. We address this question for the homogeneous connections model of strategic network formation, with two-way flow of information and without information decay. For sufficiently low linkage costs, the external threat can lead to a more connected network, a positive common enemy effect. For very high but not prohibitively high linkage costs, the equilibrium network can be minimally connected and efficient in the absence of the external threat whereas it is always empty and ineffi cient in the presence of the external threat, a negative common enemy effect. For intermediate linkage costs, both connected networks and the empty network are Nash for certain cost ranges. AU - Hoyer, Britta AU - Haller, Hans ID - 2256 JF - Journal of Economic Behavior & Organization TI - The Common Enemy Effect under Strategic Network Formation and Disruption VL - 162 ER - TY - JOUR AB - Models on network formation have often been extended to include the potential of network disruption in recent years. Whereas the theoretical research on network formation under the threat of disruption has thus gained prominence, hardly any experimental research exists so far. In this paper, we therefore experimentally study the emergence of networks including the aspect of a known external threat by relating theoretical predictions by Dzuibiński and Goyal (2013) to actual observed behaviour. We deal with the question if subjects in the role of a strategic Designer are able to form safe networks for least costs while facing a strategic Adversary who is going to attack their networks. Varying the costs for protecting nodes, we designed and tested two treatments with different predictions for the equilibrium network and investigated whether one of the least cost equilibrium networks was more likely to be reached. Furthermore, the influence of the subjects’ farsightedness on their decision-making process was elicited and analysed. We find that while subjects are able to build safe networks in both treatments, equilibrium networks are only built in one of the two treatments. In the other treatment, predominantly safe networks are built but they are not for least costs. Additionally, we find that farsightedness –as measured in our experiment– has no influence on whether subjects are able to build safe or least cost equilibrium networks. Two robustness settings with a reduced external threat or more liberties to modify the initial networks qualitatively confirm our results. Overall, in this experiment observed behaviour is only partially in line with the theoretical predictions by Dzuibiński and Goyal (2013). AU - Endres, Angelika Elfriede AU - Recker, Sonja AU - Mir Djawadi, Behnud AU - Hoyer, Britta ID - 80 JF - Journal of Economic Behavior and Organization TI - Network Formation and Disruption - An Experiment: Are equilibrium networks too complex? VL - 157 ER - TY - GEN AB - In this paper, we analyze a credence goods model adjusted to the health care market with regulated prices and heterogeneous experts. Experts are physicians and are assumed to differ in their cost of treating a small problem. We investigate the effects of this heterogeneity on the physicians’ level of fraud and on the patients’ search for second opinions. We find that introducing a fraction of more efficient low-cost physicians always increases social welfare, but in some cases only because of the raised physicians’ surplus. When the low-cost physicians’ cost advantage is small, imposing a share of low-cost physicians does not change the equilibrium fraud level. When the cost advantage is large, however, different changes in the fraud level occur depending on the share of generated low-cost physicians, the search rate and the initial level of fraud. AU - Heinzel, Joachim Maria Josef ID - 7630 KW - credence goods KW - treatment efficiency KW - heterogeneous experts KW - overcharging TI - Credence Goods Markets with Heterogeneous Experts VL - 118 ER - TY - GEN AB - We analyze a credence goods market adapted to a health care market with regulated prices, where physicians are heterogeneous regarding their fairness concerns. The opportunistic physicians only consider monetary incentives while the fair physicians, in addition to a monetary payoff, gain an non-monetary utility from being honest towards patients. We investigate how this heterogeneity affects the physicians’ equilibrium level of overcharging and the patients’ search for second opinions (which determines overall welfare). The impact of the heterogeneity on the fraud level is ambiguous and depends on several factors such as the size of the fairness utility, the share of fair physicians, the search level and the initial fraud level. Introducing heterogeneity does not affect the fraud or the search level when the share of fair physicians is small. However, when social welfare is not at its maximum, social welfare always increases if we introduce a sufficiently large share of fair physicians. AU - Heinzel, Joachim Maria Josef ID - 8873 KW - credence goods KW - heterogeneous experts KW - fairness KW - overcharging TI - Credence Goods Markets with Fair and Opportunistic Experts VL - 119 ER - TY - JOUR AU - Fritz, Marlon AU - Gries, Thomas AU - Feng, Yuanhua ID - 9920 JF - Economics Letters SN - 0165-1765 TI - Secular stagnation? Is there statistical evidence of an unprecedented, systematic decline in growth? VL - 181 ER - TY - JOUR AU - Gries, Thomas AU - Fritz, Marlon AU - Yuanhua, Feng ID - 6734 IS - 1 JF - Oxford Bulletin of Economics and Statistics TI - Growth Trends and Systematic Patterns of Boom and Busts –Testing 200 Years of Business Cycle Dynamics VL - 81 ER - TY - GEN AB - In this paper, we analyze the two-dimensional Nash bargaining solution (NBS) deploying a standard labor market negotiations model (see McDonald and Solow, 1981; Creedy and McDonald, 1991). We show that the two-dimensional bargaining problem can be decomposed into two one-dimensional problems such that the (Cartesian) product of the solutions of these problems replicates the solution of the two-dimensional problem, if the NBS is applied. However, this decomposition fails for any solution concept that does not satisfy the axiom of Independence of Irrelevant Alternatives (IIA axiom). Our decomposition result has significant implications for actual negotiations, as it allows for the decomposition of a multi-issue bargaining problem into a set of simpler problems, in particular a set of single-issue bargaining problems. In this way, the decomposition may help facilitate negotiations in labor markets and also in other environments. AU - Haake, Claus-Jochen AU - Upmann, Thorsten AU - Duman, Papatya ID - 15202 KW - Labor market negotiations KW - Efficient bargains KW - Nash bargaining solution KW - Sequential bargaining KW - Restricted bargaining games TI - The Decomposability of the Nash Bargaining Solution in Labor Markets VL - 128 ER - TY - GEN AB - We criticize some conceptual weaknesses in the recent literature on coalitional TUgames and propose, based on our critics, a new definition of dual TU-games that coincides with the one in the literature on the class of super-additive games. We justify our new definition in four alternative ways: 1. Via an adequate definition of ecient payo vectors. 2. Via a modification of the Bondareva-Shapley duality. 3. Via an explicit consideration of \coalition building". 4. Via associating general TU-games to coalition-production economies. Rather than imputations, we base our analysis on a modification of aspirations. AU - Aslan, Fatma AU - Duman, Papatya AU - Trockel, Walter ID - 15204 KW - TU-games KW - duality KW - core KW - c-Core KW - cohesive games KW - complete game efficiency TI - Duality for General TU-games Redefined VL - 121 ER - TY - JOUR AU - Gries, Thomas ID - 10090 JF - The American Economist SN - 0569-4345 TI - A New Theory of Demand-Restricted Growth: The Basic Idea ER - TY - GEN AB - We analyze the incentives for retail bundling and the welfare effects of retail bundling in a decentralized distribution channel with two retailers and two monopolistic manufacturers. One manufacturer exclusively sells his good to one retailer, whereas the other manufacturer sells his good to both retailers. Thus, one retailer is a monopolist for one product but competes with the other retailer in the second product market. The two-product retailer has the option to bundle his goods or to sell them separately. We find that bundling aggravates the double marginalization problem for the bundling retailer. Nevertheless, when the retailers compete in prices, bundling can be more profitable than separate selling for the retailer as bundling softens the retail competition. The ultimate outcome depends on the manufacturers’ marginal costs. Given retail quantity competition, however, bundling is in no case the retailer’s best strategy. Furthermore, we show that profitable bundling reduces consumer and producer surplus in the equilibrium. AU - Heinzel, Joachim Maria Josef ID - 10332 KW - retail bundling KW - leverage theory KW - double marginalization TI - Bundling in a Distribution Channel with Retail Competition ER - TY - JOUR AU - Bünnings, Christian AU - Schmitz, Hendrik AU - Tauchmann, Harald AU - Ziebarth, Nicolas R. ID - 15075 IS - 2 JF - Journal of Risk and Insurance SN - 0022-4367 TI - The Role of Prices Relative to Supplemental Benefits and Service Quality in Health Plan Choice VL - 86 ER - TY - JOUR AU - Gries, Thomas AU - Redlin, Margarete ID - 2727 IS - 3 JF - Defence and Peace Economics SN - 1024-2694 TI - Pirates – The Young and the Jobless: The Effect of Youth Bulges and Youth Labor Market Integration on Maritime Piracy VL - 30 ER - TY - GEN AU - N., N. ID - 42296 TI - Intermediaries in Networks ER - TY - GEN AU - N., N. ID - 42286 TI - Logrolling-Prozess: Theorie und formale Darstellung einer verhandlungsunterstützenden Methode ER - TY - GEN AU - N., N. ID - 42290 TI - Stability in two-sided matchings with asymmetric information ER - TY - GEN AU - N., N. ID - 42289 TI - Sincere and Sophisticated Players in Matching Markets ER - TY - GEN AU - N., N. ID - 42291 TI - Mechanismen zur Informationsgewinnung in Verhandlungen ER - TY - GEN AU - N., N. ID - 42288 TI - Die faire Verteilung unteilbarer Güter ER - TY - GEN AU - N., N. ID - 42295 TI - Axiomatisierungen des Banzhaf-Wertes ER - TY - GEN AU - N., N. ID - 42293 TI - Compatibilities in Matching Mechanisms ER - TY - GEN AU - N., N. ID - 42284 TI - Faire Aufteilung von unteilbaren Gütern: Untersuchung von Algorithmen auf Effizienz und Neidfreiheit ER - TY - GEN AU - N., N. ID - 42280 TI - Anwendung und Vergleich von Verhandlungslösungen auf das Netzwerk-Design-Problem ER - TY - GEN AU - N., N. ID - 42285 TI - Verhandlungen mit Intermediären in IT-Märkten: eine spieltheoretische Analyse ER - TY - GEN AU - N., N. ID - 42281 TI - A bargaining model for relative profit and market share delegation contracts ER - TY - GEN AU - N., N. ID - 41926 TI - Wettbewerb in Märkten für Dienstleitungen mit uninformierten Kunden ER - TY - GEN AU - N., N. ID - 42277 TI - Der Shapley-Wert als Index für phylogenetische Diversität ER - TY - GEN AU - N., N. ID - 42283 TI - Student's school matching mechanisms in the US ER - TY - JOUR AU - Gries, Thomas AU - Grundmann, Rainer ID - 2814 IS - 3 JF - Journal of International Development TI - Fertility and Modernization: The Role of Urbanization in Developing Countries VL - 30 ER - TY - CONF AB - We consider a market where final products or services are compositions of a number of basic services. Users are asked to evaluate the quality of the composed product after purchase. The quality of the basic service influences the performance of the composed services but cannot be observed directly. The question we pose is whether it is possible to use user evaluations on composed services to assess the quality of basic services. We discuss how to combine aggregation of evaluations across users and disaggregation of information on composed services to derive valuations for the single components. As a solution we propose to use the (weighted) average as aggregation device in connection with the Shapley value as disaggregation method, since this combination fulfills natural requirements in our context. In addition, we address some occurring computational issues: We give an approximate solution concept using only a limited number of evaluations which guarantees nearly optimal results with reduced running time. Lastly, we show that a slightly modified Shapley value and the weighted average are still applicable if the evaluation profiles are incomplete. AU - Feldotto, Matthias AU - Haake, Claus-Jochen AU - Skopalik, Alexander AU - Stroh-Maraun, Nadja ID - 2831 SN - 978-1-4503-5916-0 T2 - Proceedings of the 13th Workshop on Economics of Networks, Systems and Computation (NetEcon 2018) TI - Disaggregating User Evaluations Using the Shapley Value ER - TY - GEN AB - This note deals with agreeability in nontransferable utility (NTU) differential games. We introduce state feedback Pareto weights to enrich the set of efficient cooperative solutions. The framework is particularly useful if constant weights fail to support agreeability, but cooperation is desired nonetheless. The concept is applied to an adverting differential game. AU - Hoof, Simon ID - 2565 KW - NTU differential games KW - variable Pareto weights KW - agreeability TI - Feedback Pareto weights in cooperative NTU differential games VL - 112 ER - TY - GEN AB - We establish axioms under which a bargaining solution can be found by the maximization of the CES function and is unique up to specification of the distribution and elasticity parameters. This solution is referred to as the CES solution which includes the NASH and egalitarian solutions as special cases. Next, we consider a normalization of the CES function and establish axioms, under which a bargaining solution can be found by the maximization of the normalized CES and is unique up to the specifications of the distribution and its substitution parameters. We refer to this solution as the normalized CES solution, which includes the Nash and Kalai-Smorodinsky solutions as special cases. Our paper contributes to bargaining theory by establishing unified characterizations of existing as well as a great variety of new bargaining solutions. AU - Haake, Claus-Jochen AU - Qin, Cheng-Zhong ID - 2933 KW - Bargaining problem KW - CES Function KW - Normalized CES Function KW - Nash solution KW - Kalai-Smorodinsky Solution KW - Egalitarian Solution. TI - On unification of solutions to the bargaining problem VL - 113 ER - TY - CHAP AB - One of the fundamental problems in applications of methods and results from mechanism design and implementation theory is the effective enforcement of theoretically established equilibria by which social choice rules are implemented. Hurwicz (2008) and Myerson (2009) introduce different concepts of formalizing enforcement of institutional rules via the introduction of legal and illegal games. In this note the relation of their concepts with that of a social system defined inDebreu (1952) is analyzed and its potential of being instrumental for modelling institution design is discussed. The existence proof for such a system, also known as generalized game or abstract economy had been the basis for the existence proof of a competitive equilibrium of an economy. AU - Trockel, Walter AU - Haake, Claus-Jochen ED - Laslier, Jean-Francois ED - Moulin, Herve ED - Sanver, Remzi ED - Zwicker, William ID - 3098 SN - 2510-3970 T2 - Studies in Economic Design TI - Thoughts on Social Design VL - (n.d.) ER - TY - GEN AB - Focusing on a physician's relationship to a briber and a patient, this experiment analyzes the influence of a bribe on a physician's treatment decision. We conduct a partner treatment, in which briber and physician play together for the whole experiment and a stranger treament, where briber and physician are re-matched every period. With the help of the two treatments, we vary the relative reciprocity between the physician and the two other actors, briber and patient. Additionally we use a follow up questionnaire to measure the behavioral motivation of the participants. We find that reciprocity leads to bribery relationships: In the partner treatment physicians act corruptly more often. Just the variation of the relative reciprocity between the treatments shows differences in the behavior of the subjects. Differences in the participants' preferences deliver no explanation for their behavior in our experiment. AU - Hilleringmann, Vanessa ID - 3101 KW - Corruption KW - Reciprocity KW - Physician-Patient Relationship TI - The Influence of Bribery and Relative Reciprocity on a Physician's Prescription Decision - An Experiment ER - TY - JOUR AB - In our model two divisions negotiate over type-dependent contracts to determine an intrafirm transfer price for an intermediate product. Since the upstream division's (seller's) costs and downstream division's (buyer's) revenues are supposed to be private information, we formally consider cooperative bargaining problems under incomplete information. This means that the two divisions consider allocations of expected utility generated by mechanisms that satisfy (interim) individual rationality, incentive compatibility and/or ex post efficiency. Assuming two possible types for buyer and seller each, we first establish that the bargaining problem is regular, regardless whether or not incentive and/or efficiency constraints are imposed. This allows us to apply the generalized Nash bargaining solution to determine fair transfer payments and transfer quantities. In particular, the generalized Nash bargaining solution tries to balance divisional profits, while incentive constraints are still in place. In that sense a fair profit division is generated. Furthermore, by means of illustrative examples we derive general properties of this solution for the transfer pricing problem and compare the model developed here with the models existing in the literature. We demonstrate that there is a tradeoff between ex post efficiency and fairness. AU - Haake, Claus-Jochen AU - Recker, Sonja ID - 4564 IS - 6 JF - Group Decision and Negotiation TI - The Generalized Nash Bargaining Solution for Transfer Price Negotiations under Incomplete Information VL - 27 ER - TY - JOUR AU - Hoyer, Britta AU - Rosenkranz, Stephanie ID - 4982 IS - 4 JF - Games TI - Determinants of Equilibrium Selection in Network Formation - An Experiment VL - 9 ER - TY - JOUR AB - In Internet transactions, customers and service providers often interact once and anonymously. To prevent deceptive behavior a reputation system is particularly important to reduce information asymmetries about the quality of the offered product or service. In this study we examine the effectiveness of a reputation system to reduce information asymmetries when customers may make mistakes in judging the provided service quality. In our model, a service provider makes strategic quality choices and short-lived customers are asked to evaluate the observed quality by providing ratings to a reputation system. The customer is not able to always evaluate the service quality correctly and possibly submits an erroneous rating according to a predefined probability. Considering reputation profiles of the last three sales, within the theoretical model we derive that the service provider’s dichotomous quality decisions are independent of the reputation profile and depend only on the probabilities of receiving positive and negative ratings when providing low or high quality. Thus, a service provider optimally either maintains a good reputation or completely refrains from any reputation building process. However, when mapping our theoretical model to an experimental design we find that a significant share of subjects in the role of the service provider deviates from optimal behavior and chooses actions which are conditional on the current reputation profile. With respect to these individual quality choices we see that subjects use milking strategies which means that they exploit a good reputation. In particular, if the sales price is high, low quality is delivered until the price drops below a certain threshold, and then high quality is chosen until the price increases again. AU - Mir Djawadi, Behnud AU - Fahr, Rene AU - Haake, Claus-Jochen AU - Recker, Sonja ID - 5330 IS - 11 JF - PLoS ONE TI - Maintaining vs. Milking Good Reputation when Customer Feedback is Inaccurate VL - 13 ER - TY - GEN AB - We show that the Boston school choice mechanism (BM), the student proposing deferred acceptance algorithm (DA) and the top trading cycles algorithm (TTC) generate the same outcome when the colleges’ priorities are modified according to students’ preferences in a “first preferences first” manner. This outcome coincides with the BM outcome under original priorities. As a result, the DA and TTC mechanism that are non-manipulable under original priorities become vulnerable to strategic behavior. AU - Haake, Claus-Jochen AU - Stroh-Maraun, Nadja ID - 15206 TI - A Note on Manipulability in School Choice with Reciprocal Preferences VL - 111 ER - TY - GEN AB - The purpose of the present study is to experimentally test a version of the classical Chain Store Game (CSG) paradox, proposed by Trockel (1986), and determine whether one of the two theories of Induction and Deterrence, which were originally tested competitively by Selten (1978), may better account for the results. With complete and perfect information, the CSG of Selten (1978) was designed to analyze the role of reputation in repeated market interactions. Its results were discussed in two different ways: one is based on backward induction, and the other is intuitively derived from a deterrence argument. As the two explanations are incompatible, alternative models have been proposed to understand them better. The alternative game proposed by Trockel is an imperfect information version of the CSG in which the order of the two players is changed in each round and the ’Out-Aggressive’ equilibrium is used to build reputation. The existence of more than one equilibrium is the basis for the building of reputation. To the best of my knowledge, this study is the first attempt to experimentally test this alternative game with the same purpose. AU - Duman, Papatya ID - 15207 KW - Chain Store Game KW - reputation building KW - entry deterrence KW - Trockel's game TI - Does Informational Equivalence Preserve Strategic Behavior? An Experimental Study on Trockel's Game VL - 117 ER - TY - JOUR AB - We present a game-theoretic model of the repression–dissent nexus, focusing on preemptive repression. A small group of instigating dissidents triggers a protest if each dissident participates. The dissidents face random checks by security forces, and when an individual dissident is caught while preparing to participate, he or she is prevented from doing so. Each dissident can invest in countermeasures, which make checks ineffective. For large benefits of protest, higher preemptive repression in the form of a higher number of checks has a deterrence effect and makes dissidents less prone to invest in countermeasures, decreasing the probability of protest. For small benefits of protest, higher preemptive repression instead has a backfiring effect. Both myopic and farsighted governments avoid the backfiring effect by setting low levels of preemptive repression (velvet-glove strategy). However, only a farsighted government is able to exploit the deterrence effect by maintaining a high level of preemptive repression (iron-fist strategy). AU - De Jaegher, Kris AU - Hoyer, Britta ID - 1029 IS - 2 JF - Journal of Conflict Resolution TI - Preemptive Repression: Deterrence, Backfiring, Iron Fists and Velvet Gloves VL - 63 ER - TY - JOUR AU - Kolodziej, Ingo WK AU - Reichert, Arndt R AU - Schmitz, Hendrik ID - 3081 IS - 4 JF - Health services research TI - New Evidence on Employment Effects of Informal Care Provision in Europe VL - 53 ER -