How do people think about fairness in settings with uncertainty? One view holds that fairness requires equality of opportunity; another holds that it requires equality of outcomes. Relative to the resolution of uncertainty, the first view takes an ex ante perspective, while the second takes an ex post perspective. In this paper, we conduct a laboratory experiment designed to determine which per...

concrete review Both Concrete Abstract but includes referrals from ordinary courts Both Review of legislation ex post/ ex ante Both Ex post Ex post Ex post

We propose a model for the aggregate stock market together with its dividend yield and earnings yield so that the ex-ante risk premium could be extracted in an unobserved component modelling framework. We posit the model as a linked stochastic differential equation system and the linking variable is the ex-ante risk premium. By hypothesising a realistic dynamic structure for the ex-ante risk pr...

This paper explores the extent to which ex ante transaction costs may lead to failures of the Coase Theorem. In particular we identify the basic hold-up problem that arises whenever the parties to a Coasian negotiation have to pay ex ante costs for the negotiation to take place. We then show that a Coasian solution to this problem is not available: a Coasian solution typically entails a negotia...

When a firm undertakes risky activities, the conflict between social and private incentives to exercise safety care requires public intervention. This control takes the form of both monetary incentives but also monitoring taking place either ex ante or ex post, i.e., before or after an accident occurs. We delineate the respective scopes of these monitoring activities when public monitors are ei...

In a finite-trader version of the Diamond-Dybvig (1983) model, the symmetric, ex-ante efficient allocation is implementable by a direct mechanism (i.e., each trader announces the type of his own ex-post preference) in which truthful revelation is the strictly dominant strategy for each trader. When the model is modified by formalizing the sequential-service constraint (cf. Wallace, 1988), the t...

Alien or genetically altered species, purposefully released to generate various benefits, may contribute to unanticipated damage to the delicate balance of an existing ecosystem. In an ideal world, harm can be avoided in either of two ways: (1) perfect ex ante information would allow the choice of only beneficial releases; and (2) perfect revocability would allow ex post revocation of any relea...

The ex ante incentive compatible core of an exchange economy with private information is the (standard) core of a socially designed characteristic function, which expresses the fact that coalitions allocate goods by means of random incentive compatible mechanisms. We …rst survey some results in the case of perfectly divisible goods. Examples then show that the ex ante incentive compatible core ...

In welfare economics the relevance of income mobility has been often highlighted in order to allow for the measurement of equality of opportunity. In this paper we observe that intra and intergenerational income mobility have very few in common and, in particular, only the latter concerns with equality of opportunity. In contrast with existing literature we focus on the former not the latter, a...

background previous studies have mostly focused on socio-demographic and health-related determinants of health-related behaviors. although comprehensive health insurance coverage could discourage individual lifestyle improvement due to the ex-ante moral hazard problem, few studies have examined such effects. this study examines the association of a comprehensive set of factors including socio-d...