Institutions and Functions

What is an institution? And what distinguishes one type of institution from another? We answer these questions using a functionalist approach: types of institutions are identified by their function, or the coordination problems they solve; token institutions are specific solutions to these problems, or equilibria of strategic games. The functionalist approach provides some insights into the limits of reform, or the extent to which institutions \u2013 like marriage, property, or democracy \u2013 can be modified without turning them into entities of a different kind

'The Devil is in the Details' - Sex Differences in Simple Bargaining Games

The study of gender differences in social preferences has shown mixed results, preventing economists and other social scientists from drawing definitive conclusions on this topic. Several original investigations and experimental reviews have hypothesized that the main reason of this heterogeneity of results is the myriad of experimental designs used to study gender differences. In this paper we test this hypothesis by making male and female participants to face two different but related experimental games and two different information treatments. Through this 2x2 factorial design, we obtain results in line with some recent papers: women are sensitive to the design and context of the experiment in ways that men are not. In addition, we go further providing a well-grounded account on the importance of the context for female decision-making

Parafoveal preview effects from word N+1 and word N+2 during reading: A critical review and Bayesian meta-analysis

The use of gaze-contingent display techniques to study reading has shown that readers attend not only to the currently fixated word, but also to the word to the right of the current fixation. However, a critical look at the literature shows that there are a number of questions that cannot be readily answered from the available literature reviews on the topic. First, there is no consensus on whether readers also attend to the second word to the right of fixation. Second, it is not clear whether parafoveal processing is more efficient in languages such as Chinese. Third, it is not well understood whether the measured effects are confounded by the properties of the parafoveal mask. The present study addressed these issues by performing a Bayesian meta-analysis of 93 experiments that used the boundary paradigm (Rayner, 1975). There were three main findings: 1) the advantage of previewing the second word to the right is modest in size and likely not centred on zero; 2) Chinese readers seem to make a more efficient use of parafoveal processing, but this is mostly evident in gaze duration; 3) there are interference effects associated with using different parafoveal masks that roughly increase when the mask is less word-like

Forward induction and entry deterrence: an experiment

The Dixit (Econ J 90:95–106, 1980) hypothesis that incumbents use investment in capacity to deter potential entrants has found little empirical support. Bagwell and Ramey (J Econ 27:660–680, 1996) propose a model where, in the unique game-theoretic prediction based on forward induction or iterated elimination of weakly-dominated strategies, the incumbent does not have the strategic advantage. We conduct an experiment with games inspired by these models. In the Dixit-style game, the incumbent monopolizes the market most of the time even without the investment in capacity. In our Bagwell-and-Ramey-style game, the incumbent also tends to keep the market, in contrast to the predictions of an entrant advantage. Nevertheless, we fin strong evidence that forward induction affects the behavior of most participants. The results of our games suggest that players perceive that the firs mover has an advantage without having to pre-commit capacity. In our Bagwell–Ramey game, evolution and learning do not drive out this perception. We back these claims with data analysis and a theoretical framework for dynamics.Publicad

Behavioral aspects of communication in organizations

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