Distributive Concerns in the Bankruptcy Problem with an Endogenous Estate

We compare certain bankruptcy rules in a bankruptcy model with an endogenous estate on the basis of normative criteria. In particular, five properties related to distributive concerns are analyzed: minimal rights first, securement of initial investments, initial investments first, reasonable lower bounds on awards, and reasonable lower bounds on losses. The proportional rule receives the strongest support from this normative analysis among the rules considered. We also observe that the performance of the proportional rule improves in the family of bankruptcy problems with endogenous estates compared to the general set of bankruptcy problems. Our results complement those in Karagozoglu (2008) and provide a broader perspective to bankruptcy problems with endogenous estates.public economics ;

Information, Uncertainty, and Subjective Entitlements in Bargaining

More often than not production processes are the joint endeavor of people having different abilities and productivities. Such production processes and the associated surplus production are often not fully transparent in the sense that the relative contributions of involved agents are blurred; either by lack of information about the actual performance of collaborators or because of random noise in the production process or both. These variables likely influence the surplus sharing negotiations following the production. By means of a laboratory experiment, we systematically investigate their role for the whole bargaining process from opening offers to (dis)agreements and find that uncertainties in surplus production and (even) a very coarse performance information lead to bargaining asymmetries. In addition, we find that bargainers' subjective entitlements are also influenced by performance information and the randomness inherent in the production process. These differences in subjective entitlements together with the differences in entitlements between better and worse performers influence the whole bargaining process and significantly contribute to the differences in bargaining outcomes.bargaining, performance information, randomness in production process, entitlements, experiments

Optimal Search for a Moving Target with the Option to Wait

We investigate the problem in which an agent has to find an object that moves between two locations according to a discrete Markov process (see Pollock, 1970). At every period, the agent has three options: searching left, searching right, and waiting. We assume that waiting is costless whereas searching is costly. Waiting can be useful because it could induce a more favorable probability distribution over the two locations next period. We find an essentially unique (nearly) optimal strategy, and prove that it is characterized by two thresholds (as conjectured by Weber, 1986). We show, moreover, that it can never be optimal to search the location with the lower probability of containing the object. The latter result is far from obvious and is in clear contrast with the example in Ross (1983) for the model without waiting.We also analyze the case of multiple agents. This makes the problem a more strategic one, since now the agents not only compete against time but also against each other in finding the object. We find different kinds of subgame perfect equilibria, possibly containing strategies that are not optimal in the one agent case. We compare the various equilibria in terms of cost-effectiveness.Strategy;

A Noncooperative Support for Equal Division in Estate Division Problems

We consider estate division problems, a generalization of bankruptcy problems. We show that in a direct revelation claim game, if the underlying division rule satisfies efficiency, equal treatment of equals, and weak order preservation, then all (pure strategy) Nash equilibria induce equal division. Next, we consider division rules satisfying efficiency, equal treatment of equals, and claims monotonicity. For claim games with at most three agents, again all Nash equilibria induce equal division. Surprisingly, this result does not extend to claim games with more than three agents. However, if nonbossiness is added, then equal division is restored.Bankruptcy/estate division problems, claims monotonicity, direct revelation claim game, equal division, equal treatment of equals, Nash equilibria, nonbossiness, (weak) order preservation.

A Dynamic Model of Dissonance Reduction in a Modular Mind

Cataloged from PDF version of article.This article establishes an economic framework to identify the conditions under which an optimizing agent may seek (or not seek) to engage in costly dissonance reduction. We set up a dynamic model of decision-making in which the individual's mind is composed of a coordinating principal and 2 conflicting agents. We take into account the cognitive dissonance experienced as a result of the conflict between the agents. Each agent (or self) is specialized in perceiving a particular type of signal and performing a task. Dissonance levels in our model are not constant. Instead, the individual's split-selves are open to habituation, which can lead to a reduction in cognitive dissonance. Therefore, motivated habituation appears as a way to avoid dissonance. We prove the existence of an optimal strategy with a threshold structure. Our results show that the existence of intrapersonal conflict may be a long run phenomenon even in an optimizing mind

THE EARLY PSYCHOLOGICAL IMPACT OF THE COVID-19 PANDEMIC AMONG YOUNG SWIMMERS DURING HOME CONFINEMENT

Background: During the ongoing COVID-19 outbreak, few studies have focused on sport samples. The aim of the study was to investigate the early psychological impacts of the COVID-19 outbreak among young swimmers. Subjects and methods: The sample comprised 429 swimmers (229 boys, 200 girls, mean age 13.88+-1,71) from Turkey , with a mean competitive sport experience of 5.22 years. A personal information form was administered to collect data regarding demographics, sport-related experience, and home confinement effects, along with the Beck Anxiety Inventory (BAI). Results: During the first 30 days of home confinement, the swimmer\u27s general BAI scores were low, with only 10 percent showing moderate or severe anxiety levels. Girl swimmers had significantly higher anxiety levels than boys. Girl swimmers also reported positive and negative change in their relationship with their parents and expected closer help from their parents. The 14-15 year age group had significantly higher anxiety levels than the other age groups. The lack of pool training was associated with the swimmer\u27s anxiety. Conclusions: Improving athlete-parent interaction and providing coping programs for adolescent athletes may help to reduce anxiety and other negative effects of home confinement during COVID-19

A Noncooperative Approach to Bankruptcy Problems with an Endogenous Estate

We introduce a new class of bankruptcy problems in which the value of the estate is endogenous and depends on agents'' investment decisions. There are two investment alternatives: investing in a company and becoming a shareholder (risky asset) and depositing money into a bank (risk-free asset). Bankruptcy is a possible event only for the risky asset. We define a game between agents each of which aims to maximize his expected payoff by choosing an investment alternative and a company management which aims to maximize the investment in the company by choosing a bankruptcy rule. There are two types of agents in our model, who are differentiated by their incomes. We, first, consider three well-known bankruptcy rules: the proportional rule, the constrained equal awards rule and the constrained equal losses rule. We show that there always exists a pure strategy subgame perfect Nash equilibrium, which involves the proportional rule. This result is independent of the income distribution in the economy and holds even under one-sided uncertainty on the income distribution. We also show that our results can be extended to a larger set of rules containing the Talmud rule along with other rules that belong to the TAL-family. Our results provide, at least, a partial explanation from a strategic point of view for the popular use of the proportional rule in allocating bankrupt companies'' assets to shareholders.public economics ;

Implementing Equal Division with an Ultimatum Threat

Cataloged from PDF version of article.We modify the payment rule of the standard divide the dollar (DD) game by introducing a second stage and thereby resolve the multiplicity problem and implement equal division of the dollar in equilibrium. In the standard DD game, if the sum of players' demands is less than or equal to a dollar, each player receives what he demanded; if the sum of demands is greater than a dollar, all players receive zero. We modify this second part, which involves a harsh punishment. In the modified game , if the demands are incompatible, then players have one more chance. In particular, they play an ultimatum game to avoid the excess. In the two-player version of this game, there is a unique subgame perfect Nash equilibrium in which players demand (and receive) an equal share of the dollar. We also provide an -player extension of our mechanism. Finally, the mechanism we propose eliminates not only all pure strategy equilibria involving unequal divisions of the dollar, but also all equilibria where players mix over different demands in the first stage

THE EARLY PSYCHOLOGICAL IMPACT OF THE COVID-19 PANDEMIC AMONG YOUNG SWIMMERS DURING HOME CONFINEMENT

Background: During the ongoing COVID-19 outbreak, few studies have focused on sport samples. The aim of the study was to investigate the early psychological impacts of the COVID-19 outbreak among young swimmers. Subjects and methods: The sample comprised 429 swimmers (229 boys, 200 girls, mean age 13.88+-1,71) from Turkey , with a mean competitive sport experience of 5.22 years. A personal information form was administered to collect data regarding demographics, sport-related experience, and home confinement effects, along with the Beck Anxiety Inventory (BAI). Results: During the first 30 days of home confinement, the swimmer\u27s general BAI scores were low, with only 10 percent showing moderate or severe anxiety levels. Girl swimmers had significantly higher anxiety levels than boys. Girl swimmers also reported positive and negative change in their relationship with their parents and expected closer help from their parents. The 14-15 year age group had significantly higher anxiety levels than the other age groups. The lack of pool training was associated with the swimmer\u27s anxiety. Conclusions: Improving athlete-parent interaction and providing coping programs for adolescent athletes may help to reduce anxiety and other negative effects of home confinement during COVID-19

A minimally altruistic refinement of Nash equilibrium

Cataloged from PDF version of article.We introduce a minimal notion of altruism and use it to refine Nash equilibria in normal form games. We provide three independent existence proofs, relate minimally altruistic Nash equilibrium to other equilibrium concepts, conduct an in-depth sensitivity analysis, and provide examples where minimally altruistic Nash equilibrium leads to improved predictions. (C) 2013 Elsevier B.V. All rights reserved