This paper analyzes whether individuals who share risk have suboptimal demand for microinsurance due to a social dilemma. Even when individuals prefer to enroll as a group, they are tempted to free-ride on contributions from their peers and may fail to coordinate on their social optimum when insurance is offered at the individual level. A framed laboratory experiment in Tanzania, eliciting dema...

The monopolist’s incentives towards product and process innovations are evaluated against the social optimum. The main ...ndings are that (i) the incentive to invest in cost-reducing R&D is inversely related to the number of varieties being supplied at equilibrium, under both regimes; (ii) distortions obtain under monopoly, w.r.t. both the number of varieties and the technology. With substitute...

This paper addresses the question of the social policy harmonization in the European Union. In adopting a common monetary policy Europe is faced with structural and fiscal concerns, as national growth levels di¤er. Another possible factor in output shocks are the levels of various social expenditures in the member countries. OECD data on the level of social program expenditures in four EU count...

We develop a model where the unemployed workers in the city can find a job either directly or through weak or strong ties. We show that, in denser areas, individuals choose to interact with more people and meet more random encounters (weak ties) than in sparsely populated areas. We also demonstrate that, for a low urbanization level, there is a unique steady-state equilibrium where workers do n...

Individuals within complex social groups often experience reduced reproduction owing to coercive or suppressive actions of other group members. However, the nature of social and ecological environments that favour individual acceptance of such costs of sociality is not well understood. Taxa with short periods of direct social interaction, such as some communal egg layers, are interesting models...

Every atom in universe exists in equilibrium of different physical forces. Everyone in society lives in equilibrium of their work and family, of their enthusiasm and reality. Equilibrium is one of the main notions in Game Theory — the domain studies behaviors of entities according to their own interests. The conflicting interests, the lack of coordination and regulation may not lead a game to a...