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Experimental economics originated as examination of the behavior of aggregate phenomena, especially markets, populated by human participants motivated by their desire to attain their goals. The past two decades have brought two newer trends. One is a gradual but steady shift in the focus of the questions sought to be addressed through human experiments(More)
In a competitive and morally imperfect world, business people are often faced with serious ethical challenges. Harboring suspicions about the ethics of others, many feel justified in engaging in less-than-ideal conduct to protect their own interests. The most sophisticated moral arguments are unlikely to counteract this behavior. We believe that this(More)
We attempt to formulate and explain two types of self-fulfilling prophecy, called the Pygmalion effect (if a supervisor thinks her subordinates will succeed, they are more likely to succeed) and the Galatea effect (if a person thinks he will succeed, he is more likely to succeed). To this purpose, we extend a simple agency model with moral hazard and(More)
Permission is herewith granted to university to circulate and to have copied for non-commercial purposes, at its discretion, the above title upon the request of individuals or institutions. 6 " If you have an apple and I have an apple and we exchange these apples then you and I will still each have one apple. But if you have an idea and I have an idea and(More)
It is the mark of a truly intelligent person to be moved by statistics. Abstract: This module discusses the two major topics of Simp-son's paradox and the Supreme Court decision in McCleskey v. Kemp (1987). Simpson's paradox is ubiquitous in the misinterpretation of data; it is said to be present whenever a relationship that appears to exist at an(More)