Roger Sherman

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When a series of individuals with private information announce public predictions, initial conformity can create an “information cascade” in which later predictions match the early announcements. This paper reports an experiment in which private signals are draws from an unobserved urn. Subjects make predictions in sequence and are paid if they correctly(More)
This paper analyzes an auction in which bidders see independent components of a common prize value. The Nash equilibrium for two rational bidders is shown to be independent of risk attitudes. The information structure allows explicit calculation of an alternative equilibrium in which naive bidders do not correctly discount the value of the prize, contingent(More)
If the value of a commodity is unknown, a prospective buyer must realize that a bid based on an overestimate of its value is likely to be accepted. In this situation, merely finding out that one’s bid is accepted may cause one to reduce the estimate of a commodity’s value, so winning an auction can bring a feeling of regret. Acceptance of a bid is an(More)
This paper describes an incentive mechanism that is shown to enforce the use of Ramsey prices by multiproduct monopolies. The constraint given is simple. It limits information requirements on the regulatory agency to bookkeeping data of the firm. Its implementation could be easily controlled by outside courts or auditors. The process, therefore, makes use(More)
This paper analyzes the impact of advertising on consumer demand. Extant theories postulate that higher advertising expenditures signal either best buys or more experience quality embodied in the product or, alternatively, that persuasive advertising can be a substitute for experience quality. Based on the equilibrium relationships in these theories between(More)
The least restrictive alternative concept is widely used in mental health law. This paper addresses how the concept has been applied to treatment decisions. The paper offers both a legal and a behavioral analysis to some problems that have emerged in recent years concerning the selection of behavioral procedures used to change client behavior. The paper(More)
In a noncooperative oligopoly with price-setting firms, tacit collusion is present when prices and profits exceed the "competitive" levels determined by a Nash equilibrium in prices. Such tacit collusion has been observed in oligopoly experiments with product differentiation. This paper discusses several equilibrium models of tacitly collusive behavior,(More)
In early 2004, the U.S. Government initiated the Medicare Discount Drug Card Program (MDDCP), which created a market for drug cards that allowed elderly and handicapped subscribers to obtain discounts on their prescription drug purchases. Pharmacy-level prices for many drugs were posted on the program website weekly from May 29, 2004 to December 31, 2005,(More)