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Exploring Higher-Order Risk Effects
Deck, Cary A. - 2008
Higher-order risk effects play an important role in examining economic behavior under uncertainty. A precautionary demand for saving has been linked to the property of prudence and the property of temperance has been used to show how the presence of an unavoidable risk affects one's behavior...
Persistent link: https://www.econbiz.de/10012768261
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Institutions and Contract Enforcement
Falk, Armin - 2008
We provide evidence on how two important types of institutions - dismissal barriers, and bonus pay - affect contract enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a strong negative impact on worker performance, and...
Persistent link: https://www.econbiz.de/10012772046
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Money Illusion and Coordination Failure
Fehr, Ernst - 2013
Economists long considered money illusion to be largely irrelevant. Here we show, however, that money illusion has powerful effects on equilibrium selection. If we represent payoffs in nominal terms, choices converge to the Pareto inefficient equilibrium; however, if we lift the veil of money by...
Persistent link: https://www.econbiz.de/10012712069
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The Chopstick Auction : A Study of the Exposure Problem in Multi-Unit Auctions
Englmaier, Florian; Guillen, Pablo; Llorente, Loreto; … - 2021
Multi-unit auctions are sometimes plagued by the so-called exposure problem. In this paper, we analyze a simple game called the 'chopstick auction' in which bidders are confronted with the exposure problem. We do so both in theory and in a laboratory experiment. In theory, the chopstick auction...
Persistent link: https://www.econbiz.de/10013317485
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It's the Media, Stupid - How Media Activity Shapes Public Spending
Bruns, Christian - 2008
Politicians seeking reelection need voters to know what they have done for them. Thus, incentives may arise to spend …
Persistent link: https://www.econbiz.de/10012768249
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No-Trade in the Laboratory
Angrisani, Marco - 2013
We test the no-trade theorem in a laboratory financial market where subjects can trade an asset whose value is unknown. Subjects receive clues on the asset value and then set a bid and an ask at which they are willing to buy or to sell from the other participants. In treatments with no gains...
Persistent link: https://www.econbiz.de/10012753387
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How Reasonable is the 'Reasonable' Royalty Rate? Damage Rules and Probabilistic Intellectual Property Rights
Choi, Jay Pil - 2021
This paper investigates how different damage rules in patent infringement cases shape competition when intellectual property rights are probabilistic. I develop a simple model of oligopolistic competition to compare two main liability doctrines that have been used in the US to assess...
Persistent link: https://www.econbiz.de/10013317488
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How Do Judgmental Overconfidence and Overoptimism Shape Innovative Activity?
Herz, Holger; Schunk, Daniel; Zehnder, Christian - CESifo - 2013
Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue … that the connection between overconfidence and innovation is more complex than the previous literature suggests. In … particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on …
Persistent link: https://www.econbiz.de/10010877694
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Self-Confidence and Strategic Behavior
Charness, Gary; Rustichini, Aldo; Ven, Jeroen van de - CESifo - 2013
salient perturbations, we propose a strategic foundation of overconfidence. Since overconfident statements are used in …
Persistent link: https://www.econbiz.de/10010877986
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Controlling Product Risks when Consumers are Heterogeneously Overconfident: Producer Liability vs. Minimum Quality Standard Regulation
Baniak, Andrzej; Grajzl, Peter - CESifo - 2014
Contributing to the literature on the consequences of behavioral biases for market outcomes and institutional design, we contrast producer liability and minimum quality standard regulation as alternative means of social control of product-related torts when consumers are heterogeneously...
Persistent link: https://www.econbiz.de/10010948857