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Self-Confidence and Strategic Behavior
Charness, Gary; Rustichini, Aldo; Ven, Jeroen van de - CESifo - 2013
salient perturbations, we propose a strategic foundation of overconfidence. Since overconfident statements are used in …
Persistent link: https://www.econbiz.de/10010877986
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Individual and Developmental Differences in the Relationship of Preferences and Theory of Mind
Leipold, Kristina; Vetter, Nora C.; Dittrich, Marcus; … - CESifo - 2012
Theory of mind and individual preferences are important determinants in social decision making. The current study examined in a large sample whether being a cooperative preference type is related with better theory of mind skills. Furthermore, by testing adolescents and adults, we examined the...
Persistent link: https://www.econbiz.de/10010877849
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Peer Effects in Risk Taking
Lahno, Amrei M.; Serra-Garcia, Marta - CESifo - 2012
We examine peer effects in risk taking with complete information and compare explanations for peer effects based on relative payoff concerns to explanations that allow peer choices to matter. We vary experimentally whether individuals can condition a simple lottery choice on the lottery choice,...
Persistent link: https://www.econbiz.de/10010739341
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Correlation Neglect in Belief Formation
Enke, Benjamin; Zimmermann, Florian - CESifo - 2013
Many information structures generate correlated rather than mutually independent signals, the news media being a prime example. This paper shows experimentally that in such contexts many people neglect these correlations in the updating process and treat correlated information as independent. In...
Persistent link: https://www.econbiz.de/10010718532
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Controlling Product Risks when Consumers are Heterogeneously Overconfident: Producer Liability vs. Minimum Quality Standard Regulation
Baniak, Andrzej; Grajzl, Peter - CESifo - 2014
Contributing to the literature on the consequences of behavioral biases for market outcomes and institutional design, we contrast producer liability and minimum quality standard regulation as alternative means of social control of product-related torts when consumers are heterogeneously...
Persistent link: https://www.econbiz.de/10010948857
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How Do Judgmental Overconfidence and Overoptimism Shape Innovative Activity?
Herz, Holger; Schunk, Daniel; Zehnder, Christian - CESifo - 2013
Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue … that the connection between overconfidence and innovation is more complex than the previous literature suggests. In … particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on …
Persistent link: https://www.econbiz.de/10010877694
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Overconfidence in a Career-Concerns Setting
Rosa, Leonidas Enrique De La - CESifo - 2008
We study the effects of overconfidence in a two-period investment-decision agency setting. Under common priors, agent … from first-period investment. This implies that agent overconfidence mitigates the agency problems arising from the agent …
Persistent link: https://www.econbiz.de/10005406373
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An Externality-Robust Auction: Theory and Experimental Evidence
Bartling, Björn; Netzer, Nick - CESifo - 2014
An auction is externality-robust if unilateral deviations from equilibrium leave the other bidders’ payoffs unaffected. The equilibrium and its outcome will then persist if certain types of externalities arise between bidders. One example are externalities due to spiteful preferences, which...
Persistent link: https://www.econbiz.de/10010877664
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On the Persistence of Strategic Sophistication
Georganas, Sotiris; Healy, Paul J.; Weber, Roberto A. - CESifo - 2014
We examine whether the ‘Level-k’ model of strategic behavior generates reliable cross-game predictions within an individual. We find no correlation in subjects’ estimated levels of reasoning across two families of games. Furthermore, estimating a higher level for Ann than Bob in one family...
Persistent link: https://www.econbiz.de/10010877731
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Organizations, Diffused Pivotality and Immoral Outcomes
Falk, Armin; Szech, Nora - CESifo - 2013
This paper studies how organizational design affects moral outcomes. Subjects face the decision to either kill mice for money or to save mice. We compare a Baseline treatment where subjects are fully pivotal to a Diffused-Pivotality treatment where subjects simultaneously choose in groups of...
Persistent link: https://www.econbiz.de/10010877864