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Indiana University Bloomington


The Kelley Advantage

The department is home to the authors of Managerial Economics and Business Strategy and Games and Information: An Introduction to Game Theory, two of the nation’s leading textbooks in the field.

Research and Publications

Journal Articles

Anxiety and Performance: An Endogenous Learning-By-Doing Model

2006, International Economic Review

Michael T. Rauh, Giulio Seccia


In this article, we show that a standard economic model, the endogenous learning-by-doing model, captures several major themes from the anxiety literature in psychology. In our model, anxiety is a fully endogenous construct that can be separated naturally into its cognitive and physiological components. As such, our results are directly comparable with hypotheses and evidence from psychology. We show that anxiety can serve a motivating function, which suggests potential applications in the principal–agent literature.


Rauh, Michael T. and G. Seccia, (2006), “Anxiety and Performance: An Endogenous Learning-By-Doing Model,” International Economic Review, Vol . 47, No. 2, pp. 583-609.