Economics needs theory, lab experiments, historical data and field evidence. Pilot programs and randomized controlled trials are particularly credible from the point of view of internal validity. However, the results of these “proof-of-concept” studies do not necessarily extend beyond the […]
Competitive markets are a well understood economic mechanism. The Economic Theory explains remarkably well, at least for a social science, its properties and success along economic history. We have lab experimentation (see here), and plenty of historical evidence that […]
Very often Economics is censured for using unrealistic assumptions, like that stating that people are selfish. According to some critics (e.g., the philosopher Mario Bunge, 2010 ), this fact is enough to show the invalidity of Economic models. After all, […]
Game Theory studies mathematical models of strategic decision. Historically, the first approach was to study games as interactions of perfectly rational individuals, who have complete and transitive preferences and who are intelligent enough to analyze the game. This is a […]
Online courses are rapidly expanding. They can reach more students and reduce drastically the costs of teaching. They are, thus, an attractive option for both students and schools. Being a recent development, there is still little research to assess their […]
The analysis of armed conflicts between countries has a tradition in Game Theory, starting with the classical models for the battle of the Bismark Sea by Haywood (1954) and for the nuclear conflict in the Cold War by Schelling (1960) […]
Gary Becker presented a first economic approach to criminal behavior. In a very standard neoclassical framework he studied this apparently non-economic problem. In particular, Becker assumed rational criminals responding to variables such as the probability of being caught, the severity […]
This post summarizes the article “Confirmation bias with motivated beliefs”, by Charness and Dave, published in Games and Economic Behavior in 2017.
Confirmation bias (CB) can be defined as an agent’s tendency to seek, interpret and use evidence in a […]
This article summarizes the Babcock et al. (2017) , recently published in the American Economic Review.
Among the different reasons to explain the gender gap in the labor market one is the process by which men and women advance […]
The last issue of the Journal of Economic Perspectives published the article Is China Socialist? by Barry Naughton , which I summarize here.
In order to address the question, the first thing Naughton does is to provide a working definition […]