Narrow search
Showing 1 - 10 of 983
Cover Image
The Devil You Know : Rational Inattention to Discrete Choices When Prior Information Matters
Pellegrino, Bruno - 2023
agents who are uncertain about choice payoffs and who have access to a flexible, costly information acquisition technology … the decision maker’s prior information to differ across choices. In this paper, I solve the RI-logit model analytically … exogenous change in prior information, thus extending the model’s applicability to a new range of settings where prior …
Persistent link: https://www.econbiz.de/10014358846
Cover Image
Reverse Bayesianism : Revising Beliefs in Light of Unforeseen Events
Becker, Christoph K.; Melkonyan, Tigran; Proto, Eugenio; … - 2021
Bayesian updating is the dominant theory of learning. However, the theory is silent about how individuals react to events that were previously unforeseeable or unforeseen. Building on a recently developed axiomatic framework to analyze such situations, we test if subjects update their beliefs...
Persistent link: https://www.econbiz.de/10013227484
Cover Image
Peer effects in risk taking
Lahno, Amrei M.; Serra-Garcia, Marta - 2012
This paper examines the effect of peers on individual risk taking. In the absence of informational motives, we investigate why social utility concerns may drive peer effects. We test for two main channels: utility from payoff differences and from conforming to the peer. We show experimentally...
Persistent link: https://www.econbiz.de/10010291567
Cover Image
Audi Alteram Partem: An Experiment on Selective Exposure to Information
Montanari, Giovanni; Nunnari, Salvatore - 2023
We report the results of an experiment on selective exposure to information. A decision maker interested in learning … about an uncertain state of the world can acquire information from one of two sources which have opposite biases: when … is better off seeking confirmatory information unless the source biased against the prior is sufficiently more reliable …
Persistent link: https://www.econbiz.de/10014469435
Cover Image
Ambiguity Attitudes of Individuals and Groups in Gain and Loss Domains
Minnich, Aljoscha; Lange, Andreas - 2023
This study measures the differences in ambiguity attitudes of groups and individuals in the gain and loss domain. We elicit the ambiguity attitudes and ambiguity-generated insensitivity for natural temperature events. We do not find significant differences between individuals and groups in our...
Persistent link: https://www.econbiz.de/10014469785
Cover Image
Reverse Bayesianism: Revising Beliefs in Light of Unforeseen Events
Becker, Christoph K.; Melkonyan, Tigran; Proto, Eugenio; … - 2020
”, which ensures that the old information is used correctly after an unforeseen event materializes. We find that participants …
Persistent link: https://www.econbiz.de/10012425568
Cover Image
Cross-Game Learning and Cognitive Ability in Auctions
Giebe, Thomas; Ivanova-Stenzel, Radosveta; Kocher, Martin G. - 2021
Overbidding in second-price auctions (SPAs) has been shown to be persistent and associated with cognitive ability. We study experimentally to what extent cross-game learning can reduce overbidding in SPAs, taking into account cognitive skills. Employing an order-balanced design, we use...
Persistent link: https://www.econbiz.de/10012799696
Cover Image
Rational information choice in financial market equilibrium
Muendler, Marc-Andreas - 2005
defined law of demand for financial information when asset return distributions are conjugate priors to signals such as in the … return prevents Bayesian investors from unbounded information demand even if signals are costless, unless the riskfree asset …
Persistent link: https://www.econbiz.de/10010261163
Cover Image
Still in Search of the Sunk Cost Bias
Negrini, Marcello; Riedl, Arno; Wibral, Matthias - 2021
Evidence from hypothetical scenarios strongly suggests the existence of a sunk cost bias, the tendency to ‘throw good money after bad money.’ However, the few studies using incentives are inconclusive. In addition, evidence on potential psychological channels underlying such a bias is...
Persistent link: https://www.econbiz.de/10013315181
Cover Image
Breakthrough renewables and the green paradox
van der Ploeg, Rick - 2012
We show how a monopolistic owner of oil reserves responds to a carbon-free substitute becoming available at some uncertain point in the future if demand is isoelastic and variable extraction costs are zero but upfront exploration investment costs have to be made. Not the arrival of this...
Persistent link: https://www.econbiz.de/10010289634