Laboratory and field studies of time preference find that discount rates are much greater in the short-run than in the long-run. Hyperbolic discount functions capture this property. This paper presents simulations of the savings and asset allocation choices of households with hyperbolic preferences. The behavior of the hyperbolic households is com-pared to the behavior of
In recent years a number of seaport facilities have been awarded in Demsetz auctions to the operator that bidding the lowest cargo-handling fee. A major concern is that the port operator may integrate into shipping and sabotage competitors, thereby rendering the competitive auction irrelevant. The standard policy recommendation to mitigate this problem, is to ban
