This is the ultimatum game: You are provisionally allocated USD10 with the following instructions. You have to decide a way to divide this money with another person. If she or he agrees, the division is carried out. If not, you both get nothing. What would you do? How would you react if you were the […]
Imagine the following situation: about 100 people have to choose one of them for an important position; they have different preferences about who must be chosen, some may have a stronger or lighter interest in being elected, but, and this is essential, it is very likely that most of them will have to cast their […]
Markets are the most studied economic mechanism for two main reasons. First, they have existed in most societies. Second, at least since Adam Smith we have learned some of the interesting properties they possess. In particular, the modern General Equilibrium Theory, in its standard version, asserts that rational agents interacting in a competitive market with […]
Think about yourself for a second: how did you react to the epidemic of the avian or the swine flu (H1N1) a couple of years ago? Did you go through special cares or measures in order to avoid the infection? Did you even really consider changing your everyday habits because of the fear and panic […]