Chaim Fershtman

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This paper proposes an experimental approach to studying different aspects of discrimination. We let participants play various games with opponents of distinct ethnic afŽliation. Strategies based upon such ethnic afŽliation provide direct evidence of ethnic discrimination. This approach was utilized to study ethnic discrimination in Israeli Jewish society.(More)
Open source software (OSS) is an economic paradox. Development of open source software is often done by unpaid volunteers and the “source code” is typically freely available. Surveys suggest that status, signaling, and intrinsic motivations play an important role in inducing developers to invest effort. Contribution to an OSS project is rewarded by adding(More)
We examine the effects of strategic delegation in a simple ultimatum game experiment. We show that when the proposer uses a delegate, her share increases both when the delegate is optional or mandatory. This is true despite the fact that the delegate cannot be used as a commitment device. We also show that unobserved delegation by the responder reduces her(More)
This paper studies equilibrium behavior in a class of games that models asymmetric competitions with unconditional and conditional investments. Such competitions include lobbying settings, labor-market tournaments, and R&D races, among others. I provide an algorithm that constructs the unique equilibrium in these games, and apply it to study competitions in(More)
Can advertising lead to a sustainable competitive advantage? To answer this question, we propose a dynamic model of advertising competition where firms repeatedly advertise, compete in the product market, and make entry as well as exit decisions. Within this dynamic framework, we study two different models of advertising: in the first model, advertising(More)
Tournaments may be characterized by the performance they induce as well as by the rate of quitting and dropouts of participants. Although most of the attention in the literature is on the performance induced by high power incentives, there are many daily situations in which dropouts and quitting are a major concern. Using a field experiment in schools and a(More)