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Petroleum taxation and investment behaviour

Osmundsen, Petter; Emhjellen, Magne; Johnsen, Thore; … - 2014

Petroleum administration can be regarded as a principal-agent problem. The government allocates exploration and production rights to petroleum companies on behalf of the population. The government is the principal and the companies are agents. With the aim of capturing revenue for the state, the...

Persistent link: https://www.econbiz.de/10010426021

A model of reference-dependent belief updating

Maier, Johannes K.; König, Clemens - 2016

We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...

Persistent link: https://www.econbiz.de/10011557745

Do professional norms in the banking industry favor risk-taking?

Cohn, Alain; Fehr, Ernst; Maréchal, Michel André - 2017

In recent years, the banking industry has witnessed several cases of excessive risk-taking that frequently have been attributed to problematic professional norms. We conduct experiments with employees from several banks in which we manipulate the saliency of their professional identity and...

Persistent link: https://www.econbiz.de/10011624184

Peer effects in risk taking

Lahno, Amrei M.; Serra-Garcia, Marta - 2012 - This version: Dec 20, 2012, First version: July 13, 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/10009691154

Unleashing animal spirits : self-control and overpricing in experimental asset markets

Kocher, Martin; Lucks, Konstantin E.; Schindler, David - 2016

One possible determinant of overpricing on asset markets is a lack of self-control abilities of traders. Self-control is the individual capacity to override or inhibit undesired behavioral tendencies such as impulses and to refrain from acting on them. We implement the first experiment that is...

Persistent link: https://www.econbiz.de/10011444434

Bubbles in hybrid markets : how expectations about algorithmic trading affect human trading

Farjam, Mike; Kirchkamp, Oliver - 2015

Bubbles are omnipresent in lab experiments with asset markets. Most of these experiments were conducted in environments with only human traders. Today markets are substantially determined by algorithmic traders. Here we use a laboratory experiment to measure changes of human trading behavior if...

Persistent link: https://www.econbiz.de/10011392621

Optimally imprecise memory and biased forecasts

Silveira, Rava Azeredo da; Sung, Yeji; Woodford, Michael - 2020

We propose a model of optimal decision making subject to a memory constraint. The constraint is a limit on the complexity of memory measured using Shannon's mutual information, as in models of rational inattention; but our theory differs from that of Sims (2003) in not assuming costless memory...

Persistent link: https://www.econbiz.de/10012316965

The epistemic vices of democracies in the age of populism

Bonatti, Luigi - 2023

how the imperfections of human rationality shape individual decisions and behaviors, the implications of these … democracy as human rationality in pursuit of the common good, which serves to provide cover for those who profit from the … exploit to their advantage people's imperfect rationality (using "easy arguments", emotions, stereotypes…). …

Persistent link: https://www.econbiz.de/10014315089

Rationality in economics : theory and evidence

Dhami, Sanjit S.; Al-Nowaihi, Ali - 2018

We examine the various senses in which economist use the term "rationality" and then outline some of the commonly drawn …

Persistent link: https://www.econbiz.de/10011793877

Public goods games and psychological utility : theory and evidence

Dhami, Sanjit S.; Wei, Mengxing; Al-Nowaihi, Ali - 2018

We consider a theoretical model of a public goods game that incorporates reciprocity, guilt-aversion/surprise-seeking, and the attribution of intentions behind these emotions. In order to test our predictions, we implement the "induced beliefs method" and a within-subjects design, using the...

Persistent link: https://www.econbiz.de/10011845117