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Behavioral Economics as Applied to Firms: A Primer

Armstrong, Mark; Huck, Steffen - CESifo - 2010

We discuss the literatures on behavioral economics, bounded rationality and experimental economics as they apply to firm behaviour in markets. Topics discussed include the impact of imitative and satisficing behavior by firms, outcomes when managers care about their position relative to peers,...

Persistent link: https://www.econbiz.de/10008572583

Informational Requirements of Nudging

Benkert, Jean-Michel; Netzer, Nick - CESifo - 2015

A nudge is a non-coercive paternalistic intervention that attempts to improve choices by manipulating the framing of a …

Persistent link: https://www.econbiz.de/10011272627

Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When do they Arise?

Baert, Stijn; Cockx, Bart - CESifo - 2013

This article decomposes the observed gaps in educational attainment and school-to-work transitions between grandchildren of natives and immigrants in Belgium into (i) differences in observed family endowments and (ii) a residual “pure ethnic gap”. It innovates by explicitly taking delays in...

Persistent link: https://www.econbiz.de/10010631777

Why Does Height Matter for Educational Attainment? Evidence from German Pre-Teen Children

Cinnirella, Francesco; Piopiunik, Marc; Winter, Joachim - CESifo - 2010

investigate the mechanisms behind this relationship using data on German pre-teen students. We show that (i) taller children are … better recommendations to taller students. This holds even when controlling for academic achievement and parental background … respect to education policy, our findings suggest that early school tracking might increase disadvantages for students with …

Persistent link: https://www.econbiz.de/10008572551

Reserve Price Formation in Online Auctions

Englmaier, Florian; Schmöller, Arno - CESifo - 2008

We use a unique hand collected data set of 6 258 auctions from the online football manager game Hattrick to study micro-patterns of reserve price formation. We find that chosen reserve prices exhibit both, very sophisticated and “irrational” behavior by the sellers. Reserve prices pick up...

Persistent link: https://www.econbiz.de/10005766032

Framing Effects in Political Decision Making: Evidence from a Natural Voting Experiment

Buetler, Monika; Maréchal, Michel André - CESifo - 2007

This paper analyzes a recent ballot in which two virtually identical popular initiatives, both demanding a decrease in the legal age of retirement in Switzerland, led to differences in approval rates of nearly seven percentage points. Based on this unique natural experiment, the existence of...

Persistent link: https://www.econbiz.de/10005094330

Fundamental and Non-Fundamental Equilibria in the Foreign Exchange Market. A Behavioural Finance Framework

Grauwe, Paul de; Dieci, Roberto; Grimaldi, Marianna - CESifo - 2005

We develop a simple model of the exchange rate in which agents optimize their portfolio and use different forecasting rules. They check the profitability of these rules ex post and select the more profitable one. This model produces two kinds of equilibria, a fundamental and a bubble one. In a...

Persistent link: https://www.econbiz.de/10005406025

Bubbles and Crashes in a Behavioural Finance Model

Grauwe, Paul De; Grimaldi, Marianna - CESifo - 2004

Persistent link: https://www.econbiz.de/10005406325

The Weak Rationality Principle in Economics

Kirchgässner, Gebhard - CESifo - 2005

The weak rationality principle is not an empirical statement but a heuristic rule of how to proceed in social sciences. It is a necessary ingredient of any ‘understanding’ social science in the Weberian sense. In this paper, first this principle and its role in economic theorizing is...

Persistent link: https://www.econbiz.de/10005406455

Bounded Rationality and Voting Decisions Exploring a 160-Year Period

Stadelmann, David; Torgler, Benno - CESifo - 2012

Using a natural voting experiment in Switzerland that encompasses a 160-year period (1848–2009), we investigate whether a higher level of complexity leads to increased reliance on expert knowledge. We find that when more referenda are held on the same day, constituents are more likely to refer...

Persistent link: https://www.econbiz.de/10010568471