Showing 1 - 10 of 16
We develop interpretable, quantitative indices of the objective and subjective complexity of lottery choice problems … important complexity feature in the indices is a measure of the excess dissimilarity of the cumulative distribution functions of … the lotteries in the set. Using our complexity indices, we study behavioral responses to complexity out-of-sample across …
Persistent link: https://www.econbiz.de/10014340230
a series of additional laboratory experiments suggest that task complexity decreases the responsiveness to incentives …
Persistent link: https://www.econbiz.de/10011298558
This paper studies the relevance of cognitive uncertainty - subjective uncertainty over one’s utility-maximizing action - for understanding and predicting intertemporal choice. The main idea is that when people are cognitively noisy, such as when a decision is complex, they implicitly treat...
Persistent link: https://www.econbiz.de/10012697938
computational complexity of the decision problem. These results point to the context-dependence of what comes to mind and the …
Persistent link: https://www.econbiz.de/10012171711
obligations. We present evidence from a laboratory tax experiment suggesting that the effects of complexity on compliance are … intrinsically linked to distributive fairness. We find that compliance remains largely unaffected by complexity when income taxes … are distributed to a morally justified charity. Conversely, complexity significantly amplifies noncompliance when income …
Persistent link: https://www.econbiz.de/10012119790
The present complexity approach is based on two assumptions: A1: measurability of deviations of outcomes with respect … to reference values; A2 : extension of A1 to multi-set analysis. Complexity is then defined in terms of multi … reducing greatly the degree of complexity of the problem, and hence the difficulty of finding a solution. …
Persistent link: https://www.econbiz.de/10009781643
We study two dimensions of complexity that may interfere with individual choice. The first one is object complexity … complexity, which increases when suboptimal alternatives become more similar to optimal ones. We develop a satisficing …, as the object complexity of an optimal (suboptimal) alternative increases, it becomes less (more) likely to be chosen …
Persistent link: https://www.econbiz.de/10012602341
We analyze the relationship between cognitive ability and bunching in the context of a large and salient kink point of the Swedish income tax schedule. Using population-wide register data from the Swedish military enlistment and administrative tax records, we find that high-ability individuals...
Persistent link: https://www.econbiz.de/10012206064
from complexity theory that takes account of true uncertainty and increasing returns to technology adoption. We examine …
Persistent link: https://www.econbiz.de/10014463535
complexity is associated with high contract incompleteness and hence the increased relevance of trust-based relational contracts … procurement, again for low tech objects. This complexity-based difference persists even when the same supplier provides both types … contracting model, where the cost of switching suppliers is technology-specific and increases with object complexity, shifting …
Persistent link: https://www.econbiz.de/10014556693