Economics - Research Publications

Permanent URI for this collection

Search Results

Now showing 1 - 10 of 10
  • Item
    Thumbnail Image
    Lie groups of partial differential equations and their application to the multidimensional screening problems
    BASOV, S (Department of Economics, The University of Melbourne, 2004)
    In this paper I described group theoretic methods that can be used for analyzing the boundary problems, which arise when the Hamiltonian method is applied to solve the relaxed problem for the multidimensional screening problem. This technique can provide some useful insights into the structure of solutions and some times may help to arrive at particular solutions.
  • Item
    Thumbnail Image
    Quantal response equilibrium with non-monotone probabilities: a dynamic approach
    BASOV, S (Department of Economics, The University of Melbourne, 2003)
  • Item
    Thumbnail Image
    Bounded rationality: static versus dynamic approach
    Basov, S. ( 2002-12)
    Two kinds of theories of the boundedly rational behavior are possible. Static theories focus on stationary behavior and do not include any explicit mechanism for temporal change. Dynamic theories, on the other hand, explicitly model the fine-grain adjustments made by the subjects in response to their recent experiences. The main contribution of this paper is to argue that the restrictions usually imposed on the distribution of choices in the static approach are generically not supported by an explicit adjustment mechanism
  • Item
    Thumbnail Image
    A partial characterization of the solution of the multidimensional screening problem with nonlinear preferences
    Basov, S. ( 2002-11)
    In this paper I apply the Hamiltonian method to solve the relaxed multidimensional screening problem. I also illustrate by some examples that the Hamiltonian technique coupled with implementability criterion developed by Carlier [2002] sometimes allows us to arrive at a complete solution of a screening problem.
  • Item
    Thumbnail Image
    An evolutionary model of reciprocity
    Basov, S. ( 2001-09)
    Despite the pervasiveness of reciprocal behavior, it has received little attention in the economic literature. In this paper, I consider an evolutionary model of reciprocity. The main findings of this paper are that evolution can support reciprocal behavior for the fraction of population, which is insensitive to the stakes involved, but is sensitive to the cohesiveness of the relationships. These findings match stylized facts learned from experimental and field studies of reciprocity.
  • Item
    Thumbnail Image
    Incentives for boundedly rational agents
    BASOV, S (Berkeley Electronic Press, 2003)
  • Item
    Thumbnail Image
    Heterogenous human capital: life cycle investment in health and education
    Basov, S. ( 2002-02)
    During the last forty years, economists have devoted a great deal of effort to developing the concept of human capital and applying it to explain investment in education, income inequality, and life-time earning profiles. Early contributions to the human capital theory suggested that there might exist several forms of human capital. In this paper I proposed a simple model that allows us to incorporate health-investment decisions into a life-cycle framework. The complementarity between savings, health, and education is created by an insurance motive for the accumulation of health. The model predicts a positive correlation between the health stock, education and savings rate for both high income countries and poor countries. I showed that investments in education are independent of health status for sufficiently high levels of health and increases in health if the health status is lo
  • Item
    Thumbnail Image
    Why do social skills matter?
    Basov, S. ( 2002-03)
    In this paper I propose a model where social skills of a manager signal the workers that their effort is productive. In this model firms with a high productivity of effort hire a socially skilled manager and pay higher wages, and workers hired by these firms exert higher effort. In a broader context, the paper argues the employees are compensated with a higher wage and better working conditions for higher levels of effort.
  • Item
    Thumbnail Image
    Imitation and social learning
    BASOV, S (Department of Economics, The University of Melbourne, 2002)
  • Item
    Thumbnail Image
    Evolution of social behavior in the global economy : the replicator dynamics with migration
    Basov, S. ( 2002-05)
    In this paper I consider the effects of migration on the spread and the speed of the propagation of new conventions, technologies, etc. I show that the speed of the propagation increases with the openness of the economy. The application of the model to the equilibrium selection in 2 x 2 coordination games is also discussed.