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Endogenous Selection of Aspiring and Rational
, 2007
"... The paper studies an evolutionary model where players from a given population are randomly matched in pairs each period to play a coordination game. At each instant, a player can choose to adopt one of the two possible behavior rules, called the rational rule and the aspiring rule, and then take a ..."
Abstract
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The paper studies an evolutionary model where players from a given population are randomly matched in pairs each period to play a coordination game. At each instant, a player can choose to adopt one of the two possible behavior rules, called the rational rule and the aspiring rule, and then take actions prescribed by the chosen rule. The choice between the two rules depends upon their relative performance in the immediate past. We show that there are two stable long run outcomes where either the rational rule becomes extinct and all players in the population achieve full efficiency, or that both the behavior rules coexist and there is only a partial use of efficient strategies in the population. These findings support the use of the aspiration driven behavior in several existing studies and also help us take a comparative evolutionary look at the two rules in retrospect.
Endogenously Chosen Boards of Directors and Their Monitoring of the CEO
 AMERICAN ECONOMIC REVIEW
, 1998
"... This paper develops a model in which the effectiveness of the board's monitoring of the CEO depends on the board's structure or composition. The independence of new directors is determined through a bargaining process between the existing directors and the CEO. The CEO's bargaining po ..."
Abstract

Cited by 444 (18 self)
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position, and thus his influence over the boardselection process, depends on an updated estimate of the CEO's ability based on his prior performance. Many empirical findings about board structure and performance arise as equilibrium phenomena in this model. We also explore the implications
Endogenous Selection or Treatment Model Estimation
 Journal of Econometrics
, 2007
"... In a sample selection or treatment effects model, common unobservables may affect both the outcome and the probability of selection in unknown ways. This paper shows that the distribution function of potential outcomes, conditional on covariates, can be identifiedgivenanobservedvariableVthat affects ..."
Abstract

Cited by 27 (7 self)
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In a sample selection or treatment effects model, common unobservables may affect both the outcome and the probability of selection in unknown ways. This paper shows that the distribution function of potential outcomes, conditional on covariates, can be identifiedgivenanobservedvariable
Uncertainty and Endogenous Selection of Macroeconomic Equilibria
, 1998
"... This paper presents a model of macroeconomic coordination failures based on market power and local oligopoly. The economy exhibits a multiplicity of Paretoranked equilibria. We show that the introduction of uncertainty generates an endogenous equilibrium selection process, due to a strategic use of ..."
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This paper presents a model of macroeconomic coordination failures based on market power and local oligopoly. The economy exhibits a multiplicity of Paretoranked equilibria. We show that the introduction of uncertainty generates an endogenous equilibrium selection process, due to a strategic use
Welfare Policy and Endogenous Selective Norms
, 1998
"... Universal norms, such as the requirement to work for selfsupport, are applied equally to rich and poor. Selective norms, such as the stigma attached to lone parenthood, seem to be imposed more heavily on those with lower incomes. Society sets a level of income at which a person is "too poor&qu ..."
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Universal norms, such as the requirement to work for selfsupport, are applied equally to rich and poor. Selective norms, such as the stigma attached to lone parenthood, seem to be imposed more heavily on those with lower incomes. Society sets a level of income at which a person is "too poor
Uncertainty and Endogenous Selection of Economic Equilibria
, 2002
"... This paper can be downloaded without charge from the ..."
A New Instrumental Method for Dealing with Endogenous Selection∗
, 2008
"... This paper develops a new method for dealing with endogenous selection. The usual instrumental strategy based on the independence between the outcome and the instruments is likely to fail when selection is directly driven by the dependent variable. Instead, the article suggests to rely on independen ..."
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This paper develops a new method for dealing with endogenous selection. The usual instrumental strategy based on the independence between the outcome and the instruments is likely to fail when selection is directly driven by the dependent variable. Instead, the article suggests to rely
Endogenous Selection of Aspiring and Rational rules in Coordination Games
, 2007
"... A multidisciplinary research centre focussed on understanding, modelling, quantification, management and control of RISK ..."
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A multidisciplinary research centre focussed on understanding, modelling, quantification, management and control of RISK
Endogenous Selection of Aspiring and Rational rules in Coordination Games
, 2007
"... The paper studies an evolutionary model where players from a given population are randomly matched in pairs each period to play a coordination game. At each instant, a player can choose to adopt one of the two possible behavior rules, called the rational rule and the aspiring rule, and then take a ..."
Abstract
 Add to MetaCart
The paper studies an evolutionary model where players from a given population are randomly matched in pairs each period to play a coordination game. At each instant, a player can choose to adopt one of the two possible behavior rules, called the rational rule and the aspiring rule, and then take actions prescribed by the chosen rule. The choice between the two rules depends upon their relative performance in the immediate past. We show that there are two stable long run outcomes where either the rational rule becomes extinct and all players in the population achieve full efficiency, or that both the behavior rules coexist and there is only a partial use of efficient strategies in the population. These findings support the use of the aspiration driven behavior in several existing studies and also help us take a comparative evolutionary look at the two rules in retrospect.
Results 1  10
of
3,367