In many group decisions unanimity is required to ensure that a reform will be adopted only if it benefits all its members. Multinational organizations may be the best example of this. However, when members have incomplete and private information about the convenience of the reform, a majority rule with veto power performs better in the […]
Are we in the best of the times, as Steven Pinker asserts? Or do we live in a ‘posthumous’ society, to say it with the favourite image of Marina Garcés? As I told in the previous entry, it is not easy to make a direct comparison between the ideas of both authors, because they follow […]
Keep in mind the word Enlightenment , because it’s very likely that it will be one of the most fashionable concepts within the next months. At a global level, Steven Pinker’s new book, Enlightenment now , will probably carry the lead in terms of sellings, comments and criticisms. But by a fortunate coincidence, its publication […]
The most used mechanism to guarantee universal education in a country is by providing free public education, where public means both publicly financing and public provision. Milton Friedman (1962) made the case to keep the public funding but make the provision private through a system of school vouchers. Say that the State spends 100 per […]
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 context in which they where implemented or scale up if they are generalized. Banerjee et […]
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 a market oriented society improves upon a non-market oriented one. It has happened in democracies like […]
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, if we start with a falsehood, how can we hope to find useful theories? The […]
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 normative approach: it states what to do if you accept that you and the others […]
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 performance. A first group of studies used the method of randomly assigning students to an […]
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) . More recent analyses focus on the uncertainty of the specific destruction capacity of one […]