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The Role of Salience in Performance Schemes: Evidence from a Field Experiment
Englmaier, Florian; Roider, Andreas; Sunde, Uwe - C.E.P.R. Discussion Papers - 2012
tasks. We analyze the effects of the salience of incentives in a team production setting where the principal has an interest … incentive system without changing the incentive system. The results indicate that salience of incentives itself is statistically … and economically important for performance. We find that higher salience of incentives for quantity increases quantity …
Persistent link: https://www.econbiz.de/10011084038
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Unshrouding Effects on Demand for a Costly Add-on: Evidence from Bank Overdrafts in Turkey
Alan, Sule; Cemalcilar, Mehmet; Karlan, Dean S.; … - C.E.P.R. Discussion Papers - 2015
Models of shrouding predict that firms lack incentives to compete on add-on prices. Working with a large Turkish bank to test SMS direct marketing promotions to 108,000 existing checking account holders, we find that messages promoting a large discount on the overdraft interest rate reduce...
Persistent link: https://www.econbiz.de/10011168904
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A Flexible Test for Present Bias and Time Preferences using Land-Lease Contracts
Gautier, Pieter A; van Vuuren, Aico - C.E.P.R. Discussion Papers - 2011
When agents have present bias, they discount more between now and the next period than between period t ( 1) and t + 1. How fast the future discount rate (evaluated today) decays is an empirical question. We show that the discount function can be non-parametrically identified with contracts that...
Persistent link: https://www.econbiz.de/10009251301
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Paying for Confidence: An Experimental Study of the Demand for Non-Instrumental Information
Eliaz, Kfir; Schotter, Andrew - C.E.P.R. Discussion Papers - 2009
This paper presents experimental evidence that when individuals are about to make a given decision under risk, they are willing to pay for information on the likelihood that this decision is ex-post optimal, even if this information will not affect their decision. Our findings suggest that this...
Persistent link: https://www.econbiz.de/10004976787
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Predicting Lotto Numbers
Jørgensen, Claus Bjørn; Suetens, Sigrid; Tyran, … - C.E.P.R. Discussion Papers - 2011
We investigate the "law of small numbers" using a unique panel data set on lotto gambling. Because we can track individual players over time, we can measure how they react to outcomes of recent lotto drawings. We can therefore test whether they behave as if they believe they can predict lotto...
Persistent link: https://www.econbiz.de/10008925716
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Risk Aversion in a Dynamic Asset Allocation Experiment
Brocas, Isabelle; Carrillo, Juan D; Giga, Aleksandar; … - C.E.P.R. Discussion Papers - 2015
We conduct a controlled laboratory experiment where subjects dynamically choose their portfolio allocation between a safe and a risky asset. We first derive analytically the optimal allocation of an expected utility maximizer with HARA utility function. We then fit the experimental choices to...
Persistent link: https://www.econbiz.de/10011145479
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Keep Up With the Winners: Experimental Evidence on Risk Taking, Asset Integration, and Peer Effects
Fafchamps, Marcel; Kebede, Bereket; Zizzo, Daniel John - C.E.P.R. Discussion Papers - 2013
The paper reports the result of an experimental game on asset integration and risk taking. We find evidence that winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the experiment affects risk taking. We find some evidence of...
Persistent link: https://www.econbiz.de/10011084146
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Boundedly Rational Dynamic Programming: Some Preliminary Results
Gabaix, Xavier - C.E.P.R. Discussion Papers - 2012
A key open question in economics is the practical, portable modeling of bounded rationality. In this short note, I report on ongoing progress that is more fully developed elsewhere. I present some results from a new model with boundedly rational features in which the decision-maker (DM) builds a...
Persistent link: https://www.econbiz.de/10011083499
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The Impact of the Iraq War on US Consumer Goods Sales in Arab Countries
Clerides, Sofronis; Davis, Peter; Michis, Antonis - C.E.P.R. Discussion Papers - 2010
Did the rise in anti-American sentiment caused by the Iraq war affect sales of US goods abroad? We address this question using data on soft drink and fabric detergent sales in nine Arab countries. We find a statistically significant negative impact of the war on sales of US soft drinks in seven...
Persistent link: https://www.econbiz.de/10008684679
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Rational Inattention to Subsidies for Charitable Contributions
Scharf, Kimberley; Smith, Sarah L. - C.E.P.R. Discussion Papers - 2010
Recent evidence suggests that individuals do not always take notice of tax attributes when making their choices. This paper focuses on the case of tax relief for charitable contributions. Although a fully rational donor should view a matched payment to the receiving charity and a tax rebate of...
Persistent link: https://www.econbiz.de/10008468705