Showing 71 - 80 of 153
the option values created by irreversibility and uncertainty. Externalities introduce inefficiencies in investment …
Persistent link: https://www.econbiz.de/10005789033
We analyze the investment decision of a population of time inconsistent entrepreneurs who overweight current payoffs relative to future returns. We show that, in order to avoid inefficient procrastination, agents may find it optimal to keep optimistic priors about their chances of success and...
Persistent link: https://www.econbiz.de/10005791696
We analyse an equilibrium model with restricted investor participation in which strategic arbitrageurs play an innovation game and exploit the resulting mispricings by reaping trading profits. Since the equilibrium asset structure is not chosen by a social planner, it is chosen to maximize...
Persistent link: https://www.econbiz.de/10005791699
the defence in a dynamic setting with uncertainty. A firm entering a market also considers its ease of exit, foreseeing …
Persistent link: https://www.econbiz.de/10005791899
Why do people vote? This question received a lot of attention for more than thirty years, and yet remains unanswered. In this Paper, we take stock of existing empirical regularities and argue that we can use them to improve the model of instrumental voting. Once this is done, we show that purely...
Persistent link: https://www.econbiz.de/10005791962
We consider second-price and first-price auctions in the symmetric independent private values framework. We modify the standard model by the assumption that the bidders have reference-based utility, where the reserve price (minimum bid) plays the role of the reference point. In contrast to the...
Persistent link: https://www.econbiz.de/10005792017
We develop a model of unforeseen contingencies. These are contingencies that are understood by economic agents — their consequences and probabilities are known — but are such that every description of such events necessarily leaves out relevant features that have a non-negligible impact on...
Persistent link: https://www.econbiz.de/10005792069
Instrumental variable estimation requires untestable exclusion restrictions. With policy effects on individual outcomes, there is typically a time interval between the moment the agent realizes that he may be exposed to the policy and the actual exposure or the announcement of the actual...
Persistent link: https://www.econbiz.de/10005792073
under uncertainty. Assuming cumulative prospect theory, utility functions were elicited for gains and losses at an … choice under uncertainty. Our results confirm concavity of the utility function in the gain domain and bounded sub …
Persistent link: https://www.econbiz.de/10005792132
This paper questions the perceived wisdom that migrants are more risk-loving than the native population. We employ a new large German survey of direct individual risk measures to find that first-generation migrants have lower risk attitudes than natives, which only equalize in the second generation.
Persistent link: https://www.econbiz.de/10005792497