Showing 1 - 10 of 17
While the direct impact of geographic endowments on prosperity is present in all countries, in former colonies … support for both theories, but also evidence that the authors’ estimates are mildly biased since they confound the effect of … the historical determinants of institutions with the sizeable direct impact of geographic endowments on development. …
Persistent link: https://www.econbiz.de/10010556461
Does the extent of cheating depend on a proper reference point? We use a real effort task that implements a two (gain …, the level of cheating is by far higher in the loss frame than in the gain frame. Furthermore, men are much more strongly … whether cheating is reference-dependent. Our experimental findings show that self-reported performance in the unmonitored …
Persistent link: https://www.econbiz.de/10010948874
For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex … if the buyer’s bargaining position is sufficiently strong. Moreover, we show that negotiations provide stronger … incentives for sellers to investigate possible design improvements than auctions. This provides an explanation for the widespread …
Persistent link: https://www.econbiz.de/10011210403
complementarity between the price of food in international markets and export policy. Specifically, unilateral actions by exporting … 29 food products for the period 2008-10, finding evidence of a multiplier effect. Global restrictions in a product (i ….e. the share of international trade covered by export restrictions) are positively correlated with the probability of …
Persistent link: https://www.econbiz.de/10010542015
. Interest in this model stems from the fact that it explains income expansion paths of equity and total savings particularly … well. I find that all income groups are likely to benefit from a PAYGO system, even in the absence of any redistribution …This paper studies pension design from a risk management point of view using a lexicographic loss aversion model …
Persistent link: https://www.econbiz.de/10005766119
This paper presents the results of an experiment that completely measures the utility function and probability … weighting function for different positive and negative monetary outcomes, using a representative sample of N = 1935 from the … diminishing sensitivity, and the obtained loss aversion coefficient of 1.6 is moderate but in agreement with contemporary evidence …
Persistent link: https://www.econbiz.de/10005000376
A key open question for theories of reference-dependent preferences is what determines the reference point. One …, we manipulate the rational expectations of subjects and check whether this manipulation influences their effort provision …. We find that effort provision is significantly different between treatments in the way predicted by models of expectation …
Persistent link: https://www.econbiz.de/10005051581
consumers’ reference price. Firms adjust their prices flexibly in response to variations in this demand curve, in the context of … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect …
Persistent link: https://www.econbiz.de/10010772273
We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers …’ perceived utility losses from wage decreases are weighted more heavily than the perceived utility gains from wage increases of … price. Firms adjust wages flexibly in response to variations in labor demand. The resulting theory of wage adjustment is …
Persistent link: https://www.econbiz.de/10011099757
concepts of personality - such as the Big Five and locus of control - are related. We analyze data from incentivized laboratory …Although both economists and psychologists seek to identify determinants of heterogeneity in behavior, they use … different concepts to capture them. In this review we first analyze the extent to which economic preferences and psychological …
Persistent link: https://www.econbiz.de/10010877971