Showing 1 - 10 of 367
We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...
Persistent link: https://www.econbiz.de/10013310763
This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...
Persistent link: https://www.econbiz.de/10013229788
"Big G" typically refers to aggregate government spending on a homogeneous good. In this paper, we open up this construct by analyzing the entire universe of procurement contracts of the US government and establish five facts. First, government spending is granular, that is, it is concentrated...
Persistent link: https://www.econbiz.de/10012836206
reduced reliance on intuitions. In none of the tasks are very high stakes sufficient to de-bias participants, or come even …
Persistent link: https://www.econbiz.de/10012838245
By means of a laboratory experiment, we show that, contrary to standard consumer theory, financially equivalent balance … large majority of subjects indeed have a bias in the perception of wealth, such that balance sheet composition matters: for … implies greater perceived wealth. The predominance of this bias is explained by low cognitive sophistication and great …
Persistent link: https://www.econbiz.de/10012845685
While effective bureaucracy is crucial for state capacity, its decision-making remains a black box. We elicit preferences of 900+ real-world public procurement officials in Finland and Germany. This is an important pursuit as they report having sizeable discretion and minimal extrinsic...
Persistent link: https://www.econbiz.de/10014263185
-nudge interventions worked. A follow-up experiment reveals the reason for these convincing null-effects: the information norm-nudges did …
Persistent link: https://www.econbiz.de/10012838243
News reports and communication are inherently constrained by space, time, and attention. As a result, news sources often condition the decision of whether to share a piece of information on the similarity between the signal and the prior belief of the audience, which generates a sample selection...
Persistent link: https://www.econbiz.de/10012840217
external factors if they fail. They are too easily dissatisfied with their environment, which leads them to experiment in …
Persistent link: https://www.econbiz.de/10012892079
empirically in a large scale online experiment and in the laboratory. In both experiments, the second mover’s lying propensity …
Persistent link: https://www.econbiz.de/10012892217