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We experimentally investigate behavior and beliefs in a sequential prisoner's dilemma. Each subject had to choose an action as first mover and a conditional action as second mover. All subjects also had to state their beliefs about others' second-mover choices. Using these elicited beliefs, we...
Persistent link: https://www.econbiz.de/10012854501
set of linear inequalities. From this solution he constructed a utility function rationalizing the choices of a …
Persistent link: https://www.econbiz.de/10012780251
the data by a well-behaved utility function. Our results complement the main finding of Polisson and Quah, Am. Econ. J …
Persistent link: https://www.econbiz.de/10013315672
We study the short-run effect of elections on monetary aggregates in a sample of 85 low and middle income democracies (1975-2009). We find an increase in the growth rate of M1 during election months of about one tenth of a standard deviation. A similar effect can neither be detected in...
Persistent link: https://www.econbiz.de/10013315531
This paper studies how a preference for consistency can affect economic decision-making. We propose a two-period model where people have a preference for consistency because consistent behavior allows them to signal personal and intellectual strength. We then present three experiments that study...
Persistent link: https://www.econbiz.de/10013121870
This paper proposes a novel mechanism by which changes in the distribution of money holdings have real effects. Specifically, I develop a flexible-price model of segmented asset markets that generates real aggregate effects of monetary policy through the dependence of optimal markups on the...
Persistent link: https://www.econbiz.de/10012933792
introduced in Dhillon and Dhillon and Mertens, normalizes all agents' utility functions so that the lowest value is 0 and the … highest value is 1, and then adds up the utility functions. Our three axioms are closely related to axioms that Dhillon and …
Persistent link: https://www.econbiz.de/10012947990
A nudge is a non-coercive paternalistic intervention that attempts to improve choices by manipulating the framing of a decision problem. As any paternalism, it faces the difficulty of determining the appropriate welfare criterion. We propose a welfare-theoretic foundation for nudging similar in...
Persistent link: https://www.econbiz.de/10013023118
We consider discounted-utility models with a reference stream of outcomes. We provide a common framework for the main …
Persistent link: https://www.econbiz.de/10012920859
This paper combines the standard incomplete markets model of uninsurable idiosyncratic risks and borrowing constraints with the Arrow/Romer approach to endogenous growth to analyze the interaction of risk, growth, and inequality, the latter also endogenously determined in equilibrium. We derive...
Persistent link: https://www.econbiz.de/10013105141