Education Financing and Intergenerational Mobility (2007)
C Aldo Rustichini, Aldo Rustichini, Aldo Rustichini, Andrea Ichino, Andrea Ichino, Andrea Ichino, ...
Games Played through Agents ∗ (2007)
We introduce a game of complete information with multiple principals and multiple agents. Each agent makes a decision that can affect the payoffs of all principals. Each principal offers monetary...
Consistency and Heterogeneity of Individual Behavior under Uncertainty ∗ (2007)
Syngjoo Choi, Raymond Fisman, Shachar Kariv, Jim Andreoni, Dan Ariely, Liran Einav, ...
NYU ∗ Some of the results reported here were previously distributed in a paper titled “Substantive
They are watching you: Social facilitation in institutions (2003)
Charness, Gary, Rigotti, Luca, Rustichini, Aldo
Social facilitation describes the effect on performance due to the mere presence of others. Here we study the effect of the mere presence of an audience on the behavior of people involved in a...
Statistical mechanics of asset markets with private information (2001)
Berg, Johannes, Marsili, Matteo, Rustichini, Aldo, Zecchina, Riccardo
Traders in a market typically have widely different, private information on the return of an asset. The equilibrium price of the asset may reflect this information more accurately if the number of...
Your Morals Are Your Moods (2001)
Kirchsteiger, Georg, Rigotti, Luca, Rustichini, Aldo
We test the effect of players' moods on their behavior in a gift-exchange game. In the first stage of the game, player 1 chooses a transfer to player 2. In the second stage, player 2 chooses an...
Your Morals are Your Moods (2001)
Georg Kirchsteiger, Luca Rigotti, Aldo Rustichini
We test the e®ect of players ' moods on their behavior in a gift-exchange game. In the ¯rst stage of the game, player 1 chooses a transfer to player 2. In the second stage, player 2 chooses an...
Your Morals are Your Moods (2001)
Georg Kirchsteiger, Georg Kirchsteiger, Luca Rigotti, Luca Rigotti, Aldo Rustichini, Aldo Rustichini
We test the e®ect of players ' moods on their behavior in a gift-exchange game. In the ¯rst stage of the game, player 1 chooses a transfer to player 2. In the second stage, player 2 chooses an...
Unawareness and Partitional Information Structures (1999)
Salvatore Modica, Aldo Rustichini
We claim first that simple uncertainty is not an adequate model of a subject's ignorance, because a major component of it is the inability to give a complete description of the states of the...
Games Played through Agents (1999)
We introduce a game of complete information with multiple principals and multiple agents. Each agent makes a decision that can affect the payoffs of all principals and all agents. Each principal...
Sequential Common Agency (1998)
Andrea Prat, Aldo Rustichini, Inacommonagencygamethereareseveralprincipalsandoneagent Theagent
In a common agency game a set of principals promises monetary transfers to an agent which depend on the action he will take. The agent then chooses the action, and is paid the corresponding...
Aldo Rustichini, Andrea Ichino, Daniele Checchi, Ronald Dore, Richard Freeman, Larry Katz, ...
A state school system should be expected to reduce income inequality and to make intergenerational mobility easier. It is therefore somewhat surprising to observe that Italy, in comparison to the US,...
Is A Price, Uri Gneezy, Aldo Rustichini
The deterrence hypothesis predicts that the introduction of a penalty for a specific behavior, which leaves everything else unchanged, will reduce the occurrence of that behavior. We present here the...
Optimal Properties of Stimulus-Response Learning Models (1998)
We consider stimulus-response models of learning: an agent chooses an action with a probability, which is increasing in the payoff that has been associated to that action in past periods. A procedure...
Minimizing Regret: The General Case. (1998)
In repeated games with dierential information on one side, the labelling "general case" refers to games in which the action of the informed player is not known to the uninformed, who can...
Preference for Exibility Over Many Periods. (1998)
We consider the extension of the classical problem of preference for exibility to many periods. Preferences are dened over sets of innite paths of choices. The main result provides a set of axioms on...
Pay Enough Or Don't Pay At All (1998)
: Economics seems largely based on the assumption that monetary incentives improve performance. By contrast, a large literature in psychology, including a rich tradition of experimental work, claims...
Equilibria with Social Security (1998)
Michele Boldrin, Aldo Rustichini
We model pay-as-you-go (PAYG) social security systems as the outcome of majority voting within a standard OLG model with production and an exogenous growth rate of total labor productivity. At each...
Skill, Strategy and Passion: an Empirical Analysis of Soccer (1998)
Frederic Palomino, Luca Rigotti, Aldo Rustichini
Sports provide a natural experiment on individual choices in games with high stakes. We study a game-theoretic model of a soccer match and then evaluate the ability of this model to explain actual...
We provide an axiomatic foundation for decision making in a complex environment. We do not assume that the decision maker has complete structural knowledge of the environment. Instead the agent knows...
A Theory Of Sequential Reciprocity* (1998)
Martin Dufwenberg Georg, Georg Kirchsteiger, Jel Codes A, Manfred Nermuth, Muriel Niederle, Matthew Rabin, ...
Many experimental studies indicate that people are motivated by reciprocity. Rabin (1993) develops techniques for incorporating such concerns into game theory and economics. His theory is developed...
A Unique Subjective State Space for Unforeseen Contingencies (1997)
Eddie Dekel, Barton L. Lipman, Aldo Rustichini, Ranispiegler Andnumerousseminaraudiencesforhelpfulcomments Dekelandrustichinithankthensfand
We axiomatically characterize a representation of preferences over opportunity sets which exhibit a preference for exibility, interpreted as a model of unforeseen contingencies. In this...
Belief Dependent Utility (1996)
Salvatore Modica, Aldo Rustichini
. We study preferences over Savage acts where the decision maker may assign extremely low probability to some states and some of the consequences may be extreme. In particular we are interested in...
Equilibria with social security (1995)
Boldrin, Michele, Rustichini, Aldo
We model pay-as-you-go (PAYG) social sucurity systems as the outcome of majority voting within a standard OLG model with production and an exogenous population growth rateo At each point in time...
In existing models of decision under uncertainty where the decision maker may have multiple beliefs (vague beliefs) the different beliefs are not distinguished by their degree of reliability. This...
We introduce a game of complete information with multiple principals and multiple common agents. Each agent makes a decision that can affect the payoffs of all principals. Each principal offers...
Overconfident: Do You Put Your Money On It?
A group exhibits overconfidence if significantly more than half the group members declare to be better than the median in some characteristic. Overconfidence was found in verbal reports for a variety...
Representing Preferences with a Unique Subjective State Space: Corrigendum
Eddie Eckel, Barton L Lipman, Aldo Rustichini, Todd Sarver
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Stephen V. Burks, Jeffrey Carpenter, Lorenz Goette, Kristen Monaco, Aldo Rustichini, Kay Porter
The Truckers and Turnover Project is a statistical case study of a single firm and its employees which matches proprietary personnel and operational data to new data collected by the researchers to...
Indeterminacy of Equilibrium in Dynamic Models with Externalities
Michele Boldrin, Aldo Rustichini
In this paper we study the indeterminacy of equilibria in infinite horizon capital accumulation models with technological externalities. Our investigation encompasses both models with bounded and...
Jess Benhabib, Aldo Rustichini
In this paper we study the relationship between wealth, income distribution and growth in a game-theoretic context in which property rights are not completely enforceable. We consider equilibrium...
(s,S) Equilibria in Stochastic Games with an Application to Product Innovations
Prajit K. Dutta, Aldo Rustichini
We study a class of two-player continuous time stochastic games in which agents can make (costly) discrete or discontinuous changes in the variables that affect their payoffs. It is shown that in...
Convergence to Price-Taking Behavior in a Simple Market
An independent private values model of trade with m buyers and m sellers is considered in which price is chosen to equate revealed demand and supply. In ever symmetric Bayesian Nash equilibrium, each...
Vintage Capital, Investment and Growth
Jess Benhabib, Aldo Rustichini
We study the dynamics of growth and investment in a continuous time model with vintage capital. Vintage capital models may be characterized by non-exponential rates of depreciation and technical...
Eddie Dekel, Barton Lipman, Aldo Rustichini
What behavior can be explained using the hypothesis that the agent faces temptation but is otherwise a “standard rational agent”? In earlier work, Gul–Pesendorfer [2001] use a set betweenness...
Eddie Dekel, Barton L. Lipman, Aldo Rustichini
“My own behavior baffles me. For I find myself not doing what I really want to do but doing what I really loathe.” Saint Paul What behavior can be explained using the hypothesis that the agent...
They are watching you: Social facilitation in institutions
Gary Charness, Luca Rigotti, Aldo Rustichini
Social facilitation describes the effect on performance due to the mere presence of others. Here we study the effect of the mere presence of an audience on the behavior of people involved in a...
Convergence to Efficiency in a Simple Market with Incomplete Information.
Rustichini, Aldo, Satterthwaite, Mark A, Williams, Steven R
A model with m buyers and m sellers is considered in which price is set to equate revealed demand and supply. In a Bayesian Nash equilibrium, each trader acts not as a price-taker but instead...
Variational representation of preferences under ambiguity.
Fabio Maccheroni, Massimo Marinacci, Aldo Rustichini
In the classic Anscombe and Aumann decision setting, we give necessary and sufficient conditions that guarantee the existence of a utility function u on outcomes and an ambiguity index c on the set...
Portfolio Selection with Monotone Mean-Variance Preferences.
Fabio Maccheroni, Massimo Marinacci, Aldo Rustichini, Marco Taboga
We propose a portfolio selection model based on a class of preferences that coincide with mean-variance preferences on their domain of monotonicity, but differ where mean-variance preferences fail to...
Benhabib, Jess, Rustichini, Aldo
Despite the predictions of the neoclassical theory of economic growth, we observe that poor countries have invested at lower rates and have not grown faster than rich countries. To explain these...
Better Late Than Early: Vertical Differentiation in the Adoption of a New Technology.
Dutta, Prajit K, Lach, Saul, Rustichini, Aldo
After the initial breakthrough in the research phase of R&D, a new product undergoes a process of change, improvement, and adaptation to market conditions. We model the strategic behavior of firms in...
Individual Behavior and Group Membership
Gary Charness, Luca Rigotti, Aldo Rustichini
People who are members of a group and identify with it behave differently from people who perceive themselves as isolated individuals. This paper shows that group membership affects preferences over...
Stephen V. Burks, Jeffrey Carpenter, Lorenz Götte, Kristen Monaco, Kay Porter, Aldo Rustichini
The Truckers and Turnover Project is a statistical case study of a single firm and its employees which matches proprietary personnel and operational data to new data collected by the researchers to...
Representing Preferences with a Unique Subjective State Space: A Corrigendum -super-1
Eddie Dekel, Barton L Lipman, Aldo Rustichini, Todd Sarver
Dekel, Lipman and Rustichini (2001) (henceforth DLR) axiomatically characterized three representations of preferences that allow for a desire for flexibility and/or commitment. In one of these...
Skill, Strategy, and Passion: an Empirical Analysis of Soccer
Frederic Palomino, Luca Rigotti, Aldo Rustichini
Sports provide a natural experiment on individual choices in games with high stakes. We study soccer with a game-theoretic model of a match, and then evaluate the ability of this model to explain...
Ambiguity Aversion, Robustness, and the Variational Representation of Preferences
Fabio Maccheroni, Massimo Marinacci, Aldo Rustichini
We characterize, in the Anscombe-Aumann framework, the preferences for which there are a utility functionu on outcomes and an ambiguity indexc on the set of probabilities on the states of the world...
This paper provides an axiomatic foundation for decision making in complex settings in which the decision maker does not have complete structural knowledge of the environment. The agent knows the set...
Growth and Indeterminacy in Dynamic Models with Externalities.
Boldrin, Michele, Rustichini, Aldo
In this paper we study the indeterminacy of equilibria in infinite horizon capital accumulation models with technological externalities. Our investigation encompasses both models with bounded and...
Learning about Variable Demand in the Long Run
Aldo Rustichini, Asher Wolinsky
This paper studies the problem of a monopoly who is uncertain about the demand it faces and learns about it over time through its pricing experience. The demand curve facing the monopoly is not...
Convergence to Efficiency in a Simple Market with Incomplete Information
An independent private values model of trade with m buyers and m sellers is considered in which a double auction sets price to equate revealed demand and supply. In a symmetric Bayesian Nash...
They are watching you: Social facilitation in institutions
Gary Charness, Luca Rigotti, Aldo Rustichini
Social facilitation describes the effect on performance due to the mere presence of others. Here we study the effect of the mere presence of an audience on the behavior of people involved in a...
Georg Kirchsteiger, Luca Rigotti, Aldo Rustichini
We test the effect of players' moods on their behavior in a gift-exchange game. In the first stage of the game, player 1 chooses a transfer to player 2. In the second stage, player 2 chooses an...
Portfolio Selection with Monotone Mean-Variance Preferences
Massimo Marinacci, Fabio Maccheroni, Aldo Rustichini, Marco Taboga
We propose a portfolio selection model based on a class of preferences that coincide with mean-variance preferences on their domain of monotonicity, but differ where mean-variance preferences fail to...
Georg Kirchsteiger, Luca Rigotti, Aldo Rustichini
We test the effect of players' moods on their behavior in a gift-exchange game. In the first stage of the game, player 1 chooses a transfer to player 2. In the second stage, player 2 chooses an...
Checchi, Daniele, Ichino, Andrea, Rustichini, Aldo
A state school system should be expected to reduce income inequality and to make intergenerational mobility easier. It is therefore somewhat surprising to observe that Italy, in comparison to the...
The impact of the certainty context on the process of choice
John Dickhaut, Kevin McCabe, Jennifer C. Nagode, Aldo Rustichini, Kip Smith, Jose Pardo
A brain imaging study of the choice procedure
Aldo Rustichini, John Dickhaut, Paolo Ghirardato, Kip Smith, Jose V. Pardo
Performance In Competitive Environments: Gender Differences
Uri Gneezy, Muriel Niederle, Aldo Rustichini
Even though the provision of equal opportunities for men and women has been a priority in many countries, large gender differences prevail in competitive high-ranking positions. Suggested...
Pay Enough Or Don'T Pay At All
Economists usually assume that monetary incentives improve performance, and psychologists claim that the opposite may happen. We present and discuss a set of experiments designed to test these...
Public spending and optimal taxes without commitment
Andrés Velasco, Jess Benhabib, Aldo Rustichini
We consider a representative agent, infinite-horizon economy where production requires private and public capital. The supply of public capital is financed through distortionary taxation. The optimal...
Unawareness and bankruptcy: A general equilibrium model
Salvatore Modica, Aldo Rustichini
We present a consistent pure-exchange general equilibrium model where agents may not be able to foresee all possible future contingencies. In this context, even with nominal assets and complete asset...
Intertemporal Pricing in Markets with Differential Information.
Rustichini, Aldo, Villamil, Anne P
This paper provides a theory of intertemporal pricing in a small market with differential information about the realizations of a stochastic process which determines demand. We study the sequential...
Aldo Rustichini, Anne P. Villamil
This paper analyzes intertemporal seller pricing and buyer purchasing behavior in a laboratory retail market with differential information. A seller posts one price each period that a buyer either...
Growth in economies with non convexities: sunspots and lottery equilibria
Aldo Rustichini, Paolo Siconolfi
We investigate the relation between lotteries and sunspot allocations in a dynamic economy where the utility functions are not concave. In an intertemporal competitive economy, the household...
research article : Preference for flexibility in infinite horizon problems
We consider the extension of the classical problem of preference for flexibility to many periods. Preferences are defined over sets of infinite paths of choices. The main result provides a set of...
Intertemporal pricing in markets with differential information
Aldo Rustichini, Anne P. Villamil
This paper provides a theory of intertemporal pricing in a small market with differential information about the realizations of a stochastic process which determines demand. We study the sequential...
We prove that a probability measure over a space of functions induces a measure over the product space of the image and range of these functions. As an application, we show that the equilibrium of...
A Theory of Stopping Time Games with Applications to Product Innovations and Asset Sales.
Dutta, Prajit K, Rustichini, Aldo
In this paper, the pure strategy sub game perfect equilibria of a general class of stopping time games are studied. It is shown that there always exists a natural class of Markov Perfect Equilibria,...
Preferences over characteristics and utility functions over commodities
Aldo Rustichini, Paolo Siconolfi
Characteristics, Derived utility function, D11,
A VINTAGE CAPITAL MODEL OF INVESTMENT AND GROWTH: THEORY AND EVIDENCE.
Benhabib, Jess, Rustichini, Aldo
investments ; economic equilibrium ; empirical methods ; economic models
EQUILIBRIUM CYCLING WITH SMALL DISCOUNTING: A NOTE
Benhabib, Jess, Rustichini, Aldo
economic growth ; economic equilibrium ; technology
Benhabib, Jess, Rustichini, Aldo
stochastic processes ; growth models ; risk aversion ; game theory
VINTAGE CAPITAL, INVESTMENT AND GROWTH
Benhabib, Jess, Rustichini, Aldo
capital ; investments ; economic growth
Social Conflict, Growth and Income Distribution
Benhabib, Jess, Rustichini, Aldo
Wealth ; economic equilibrium ; games ; models
Social Conflict, Growth and Inequality
Benhabib, Jess, Rustichini, Aldo
Income ; investments ; games ; wealth
Cognitive Skills Explain Economic Preferences, Strategic Behavior, and Job Attachment
Burks, Stephen V., Carpenter, Jeffrey P., Goette, Lorenz, Rustichini, Aldo
Economic analysis has said little about how an individual’s cognitive skills (CS's) are related to the individual’s preferences in different choice domains, such as risk-taking or saving, and how...
Portfolio Selection with Monotone Mean-Variance Preferences
Fabio Maccheroni, Massimo Marinacci, Aldo Rustichini, Marco Taboga
We propose a portfolio selection model based on a class of monotone preferences that coincide with mean-variance preferences on their domain of monotonicity, but differ where mean-variance...
We propose and test two possible explanations of envy and its opposite, gloating. One explanation views them as a learning process, just as regret and rejoice are in the private domain:envy is the...
Gender and competition at a young age
Gender gaps may be observed in a variety of economic and social environments. One of the possible determining factors is that men are more competitive than women and so, when the competitiveness of...
General equilibrium in economies with adverse selection
Aldo Rustichini, Paolo Siconolfi
General equilibrium, Asymmetric information, Adverse selection, Lotteries, C72, C78,
Better Late Than Early: Vertical Differentiation in the Adoption of a New Technology
Prajit K. Dutta, Saul Lach, Aldo Rustichini
After the initial breakthrough in the research phase of R&D a new product undergoes a process of change, improvement and adaptation to market conditions. We model the strategic behavior of firms in...
The deterrence hypothesis predicts that the introduction of a penalty that leaves everything else unchanged will reduce the occurrence of the behavior subject to the fine. We present the result of a...
Interdependent Utilities: How Social Ranking Affects Choice Behavior
Bault, Nadège, Coricelli, Giorgio, Rustichini, Aldo
Organization in hierarchical dominance structures is prevalent in animal societies, so a strong preference for higher positions in social ranking is likely to be an important motivation of human...
On the Computation of Optimal Monotone Mean-Variance Portfolios via Truncated Quadratic Utility
Ales Cerný, Fabio Maccheroni, Massimo Marinacci, Aldo Rustichini
We report a surprising link between optimal portfolios generated by a special type of variational preferences called divergence preferences (cf. [8]) and optimal portfolios generated by classical...
State-dependent utility and decision theory
DREZE , Jacques H., RUSTICHINI, Aldo
This survey paper prepared for the Handbook of Utility Theory covers the axiomatic foundations of decision making under uncertainty when conditional preferences are allowed to be state dependent,...
Second-to-fourth digit ratio predicts success among high-frequency financial traders
Coates, John M., Gurnell, Mark, Rustichini, Aldo
Prenatal androgens have important organizing effects on brain development and future behavior. The second-to-fourth digit length ratio (2D:4D) has been proposed as a marker of these prenatal androgen...
PORTFOLIO SELECTION WITH MONOTONE MEAN-VARIANCE PREFERENCES
Fabio Maccheroni, Massimo Marinacci, Aldo Rustichini, Marco Taboga
EDDIE DEKEL, BARTON L. LIPMAN, ALDO RUSTICHINI
"My own behaviour baffles me. For I find myself not doing what I really want to do but doing what I really loathe." Saint Paul Copyright Copyright © 2009 The Review of Economic Studies Limited.
Statistical mechanics of asset markets with private information
Johannes Berg, Matteo Marsili, Aldo Rustichini, Riccardo Zecchina
Traders in a market typically have widely different, private information on the return of an asset. The equilibrium price of the asset may reflect this information more accurately if the number of...
Is There a Method of Neuroeconomics?
This note tries to state, precisely, the method of neuroecomics, and is based on the discussion in B. Douglas Bernheim's (2009) appraisal. We claim that the theory formulates hypotheses modeling the...
Cognitive skills affect economic preferences, strategic behavior, and job attachment
Burks, Stephen V., Carpenter, Jeffrey P., Goette, Lorenz, Rustichini, Aldo
Economic analysis has so far said little about how an individual's cognitive skills (CS) are related to the individual's economic preferences in different choice domains, such as risk taking or...