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Measuring Agents' Reaction to Private and Public Information in Games with Strategic Complementarities
Cornand, Camille; Heinemann, Frank - CESifo - 2010
behavior of others. This may lead to welfare-reducing ‘overreactions’ to public signals. We present an experiment based on a …
Persistent link: https://www.econbiz.de/10008572521
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Correlation Neglect in Belief Formation
Enke, Benjamin; Zimmermann, Florian - CESifo - 2013
learning. …
Persistent link: https://www.econbiz.de/10010718532
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On the Perils of Stabilizing Prices when Agents are Learning
Mele, Antonio; Molnár, Krisztina; Santoro, Sergio - CESifo - 2015
losses are outweighed by short term gains from the learning phase. …
Persistent link: https://www.econbiz.de/10011155373
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Optimal Monetary Policy when Agents are Learning
Molnár, Krisztina; Santoro, Sergio - CESifo - 2010
We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …
Persistent link: https://www.econbiz.de/10008596587
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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...
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 … profitability of the investment decision conditional on a given public signal. An overconfident agent believes that the principal … will update her beliefs upwards more often than not. As a consequence, the agent overestimates the benefits of learning …
Persistent link: https://www.econbiz.de/10005406373
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The Lure of Authority: Motivation and Incentive Effects of Power
Fehr, Ernst; Herz, Holger; Wilkening, Tom - CESifo - 2012
Authority and power permeate political, social, and economic life, but empirical knowledge about the motivational origins and consequences of authority is limited. We study the motivation and incentive effects of authority experimentally in an authority-delegation game. Individuals often retain...
Persistent link: https://www.econbiz.de/10010598512
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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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A Large-Market Rational Expectations Equilibrium Model
Vives, Xavier - CESifo - 2011
This paper presents a market with asymmetric information where a privately revealing equilibrium obtains in a competitive framework and where incentives to acquire information are preserved. The equilibrium is efficient, and the paradoxes associated with fully revealing rational expectations...
Persistent link: https://www.econbiz.de/10009144882
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Robust Mechanism Design and Social Preferences
Bierbrauer, Felix; Ockenfels, Axel; Pollak, Andreas; … - CESifo - 2014
We study a classic mechanism design problem: How to organize trade between two privately informed parties. We characterize an optimal mechanism under selfish preferences and present experimental evidence that, under such a mechanism, a non-negligible fraction of individuals deviates from the...
Persistent link: https://www.econbiz.de/10010754659