Showing 1 - 10 of 13
The supposed irrelevance of historical costs for rational decision making has been the subject of much interest in the economic literature. In this paper we explore whether individual decision making under risk is affected by the cost of the supplied information. Outside of the lab, it is...
Persistent link: https://www.econbiz.de/10011256591
The origin of prospect theory is the desire to test the intuitive statistician in the real world. The development of this theory by the cognitive psychologists Kahneman and Tversky can be traced to the formers work in cognitive psychophysics, in which deviations from average behavior are termed...
Persistent link: https://www.econbiz.de/10011256975
The market for commercial properties is characterised by extreme heterogeneity in demand. In this paper, we aim to gain more insight in the heterogeneity in demand for employment agglomeration and size of the rental property using a two-stage hedonic approach following Bajari and Benkard (2005)....
Persistent link: https://www.econbiz.de/10011256923
This discussion paper led to a publication in the 'European Economic Review' (2013). Vol. 61, pp. 186-204.<P> Rational Expectations (RE) models have two crucial dimensions: 1) agents correctly forecast future prices given all available information, and 2) given expectations, agents solve...</p>
Persistent link: https://www.econbiz.de/10011256912
As part of the Kyoto Protocol, many countries have committed themselves tosubstantially reduce the emission of greenhouse gases within a politically imposed timeconstraint. Investment subsidies can be an important instrument to stimulate the adoption ofenergy-saving technologies to achieve...
Persistent link: https://www.econbiz.de/10011257124
We study two aspects of globalization. It allows a decision-maker to go beyond his own local experience and to learn from other decision-makers in addressing common problems. This improves the identification and diffusion of best practices. It also provides extra information to `markets' that...
Persistent link: https://www.econbiz.de/10011257292
We demonstrate the possibility of shake-out of firms and emergence of inter-firmheterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with freeentry and exit, even when there is no uncertainty and all firms are ex ante identical with perfectforesight....
Persistent link: https://www.econbiz.de/10011255543
We study a model of collective decision making with endogenous information collection.Agents collect information about the consequences of a project, communicate, and then vote onthe project. We examine under what conditions communication may increase the probability thatgood decisions are made....
Persistent link: https://www.econbiz.de/10011255757
successfully but nevertheless lost public support, and vice versa. We show that learning dynamics can rationalize this apparent … identity (reform winner or loser?) more pessimistic about their chances of benefiting from the reform. Consequently, learning …
Persistent link: https://www.econbiz.de/10011255925
learning strategy will be used, because each performs better when it is less popular. Despite that, clustering may occur if … players choose their learning strategy on the basis of largely similar information. Finally, on average players will play Hawk …
Persistent link: https://www.econbiz.de/10011255959