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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

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

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

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

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

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

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

Game Form Misconceptions Do Not Explain the Endowment Effect

Bartling, Björn; Engl, Florian; Weber, Roberto A. - CESifo - 2014

We test the claim that game form misconception among subjects making choices through the Becker-DeGroot-Marschak (BDM) value elicitation procedure provides an explanation for the endowment effect, as suggested by Cason and Plott (forthcoming). We employ a design that allows us to clearly...

Persistent link: https://www.econbiz.de/10011086456

Generosity Across Contexts

Davis, Alexander L.; Jehli, Nadja R.; Miller, John H.; … - CESifo - 2015

Extensive research in economics explores generosity in monetary allocations. However, generosity often involves the allocation of non-monetary goods or experiences. Existing evidence suggests that generosity may be higher in such contexts, though no direct comparison exists. Here, we compare...

Persistent link: https://www.econbiz.de/10011210786

The Impact of Losing in a Competition on the Willingness to Seek Further Challenges

Buser, Thomas - CESifo - 2014

How do people react to setbacks and successes? I introduce a new measure of challenge-seeking to determine the effect of winning and losing in a competition on the willingness to seek further challenges. Participants in a lab experiment compete in two-person tournaments and are then informed of...

Persistent link: https://www.econbiz.de/10010812497