Fernando Vega-Redondo

• Professor at Bocconi University

We compare two zero-sum versions of the so called Chinos Game, a traditional parlour game played in many countries. In one version, which we call Preemption Scenario, the first player who guesses right wins the prize. In the alternative version, called the Copycat Scenario, the last player who guesses right wins the prize. While in the Preemption S...

Poor economies not only produce less; they typically produce things that involve fewer inputs and fewer intermediate steps. Yet the supply chains of poor countries face more frequent disruptions---delivery failures, faulty parts, delays, power outages, theft, government failures---that systematically thwart the production process. To understand how...

The aim of this paper is to investigate how the capacity of an eco-nomic system to absorb shocks depends on the specific pattern of in-terconnections established among economic agents. The key trade-off at work is between the risk-sharing gains enjoyed by firms when they become more interconnected and the large-scale costs resulting from an increas...

We investigate the socially optimal design of financial networks, that allows to tackle the trade-off between risk sharing and contagion. We identify conditions on the shock distribution under which full integration or maximal segmentation is optimal. We also show that, under different conditions, the optimal network displays different levels of st...

This handbook is currently in development, with individual articles publishing online in advance of print publication. At this time, we cannot add information about unpublished articles in this handbook, however the table of contents will continue to grow as additional articles pass through the review process and are added to the site. Please note...

The option to leave your current partner in response to his behavior, also known as conditional dissociation, is a mechanism that has been shown to promote the emergence and stability of cooperation in many social interactions. This mechanism, nevertheless, has always been studied in combination with other factors that are known to support cooperat...

5-minute introduction to the paper: "Leave and let leave: A sufficient condition to explain the evolutionary emergence of cooperation", downloadable at http://dx.doi.org/10.1016/j.jedc.2014.06.007

Learning to write is a process where preverbal ideas (thoughts) are transformed into a written form. Such written forms produced vary from words to sentences to higher forms of discourse such as essays, reports, researches, reviews, poems, stories, dialogues, etc. These written forms that are generated, formed, and activated from thoughts are then...