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We use a regression discontinuity design to examine students' responses to the negative incentive brought on by being placed on academic probation. Consistent with a model of introducing performance standards in which agents respond differently based on ability, we find that being placed on...
Persistent link: https://www.econbiz.de/10005714140
Early admissions is widely used by selective colleges and universities. We identify some basic facts about early admissions policies, including the admissions advantage enjoyed by early applicants and patterns in application behavior, and propose a game-theoretic model that matches these facts....
Persistent link: https://www.econbiz.de/10005828520
field data and the theory favor breaking indifferences the same way at every school --single tie breaking-- in a student …
Persistent link: https://www.econbiz.de/10005718668
introduces a method to compare mechanisms based on their vulnerability to manipulation. Under our notion, the old mechanism is … mechanism was ruled illegal in 2007. Our approach provides support for these and other recent policy changes involving matching …
Persistent link: https://www.econbiz.de/10008836373
We examine novel data on searches for capital-gains-tax-related information to determine when and how taxpayers acquire information. We find strong seasonal increases in information search around tax filing deadlines, suggesting that taxpayers seek information to comply with tax laws. Positive...
Persistent link: https://www.econbiz.de/10010821830
Standardization of complex products is touted as improving consumer decisions and intensifying price competition, but evidence on standardization is limited. We examine a natural experiment: the standardization of health insurance plans on the Massachusetts Health Insurance Exchange....
Persistent link: https://www.econbiz.de/10010821858
simple cases, tests confirm that subjects adjust their attention in response to incentives as the theory dictates. …
Persistent link: https://www.econbiz.de/10010737391
We consider optimal redistribution in a model where individuals can self-select into one of several possible sectors based on heterogeneity in a multidimensional skill vector. We first show that when the government does not observe the sectoral choice or underlying skills of its citizens, the...
Persistent link: https://www.econbiz.de/10010785614
We extend Kyle's (1985) model of insider trading to the case where liquidity provided by noise traders follows a general stochastic process. Even though the level of noise trading volatility is observable, in equilibrium, measured price impact is stochastic. If noise trading volatility is...
Persistent link: https://www.econbiz.de/10010581038
Overconfident CEOs over-estimate their ability to generate returns. Thus, on the margin, they undertake mergers that destroy value. They also perceive outside finance to be over-priced. We classify CEOs as overconfident when, despite their under-diversification, they hold options on company...
Persistent link: https://www.econbiz.de/10005034329