We analyze social learning and innovation in an overlapping generations model in which available technologies have correlated payoffs. Each generation experiments within a set of policies whose payoffs are initially unknown and drawn from the path of a Brownian motion with drift. Marginal...

Die Frage nach der Kausalität fällt in die Methodologie. Methodologie ist in denWirtschaftswissenschaften ein Bereich, der sowohl bei Ökonomen als auch bei Philosophenkaum Beachtung findet. ....

This paper contributes to the literature by introducing the nexus between financial constraints and thecapital-labour uptake and by considering the capital-labour ratio to overcome the problems that haveplagued investment literature -regarding the investment-cash flow sensitivity of constrained...

This paper investigates the influence of a firm's financial status on the within-firm allocation of funds, reected in its plant-level investment and exit decisions.

There have been many claims that the Internet represents a nearly frictionless market. This paper extends the empirical results on online retailing by studying prices for nearly homogenous services - holiday packages - matched across conventional and Internet channels. On first sight, lower...

We experimentally explore individual and interactive decision making ina sequential search task and test whether generally accepted principles ofbounded rationality (aspiration formation, satisficing, and aspiration adjustment)adequately explain the observed search behavior. Subjects can, at...

This paper reports two laboratory studies designed to study the impact of public informationabout past departure rates on congestion levels and travel costs. Our experimental design isbased on a discrete version of Arnott, de Palma, and Lindsey’s (1990) bottleneck model wheresubjects have to...

Within the setting of two simple two-person coordinationgames the formation of subjective strategies is observed experimentally.Though the structure of the game is unknown playersuse their actions in order to coordinate on a specific equilibrium.Strategies enable them to interpret the...

Advertisements provide consumers with knowledge about private products, whereas political information is required to provide voters with knowledge of public issues. Modern information technologies and globalization are increasing the exposure of individuals to information. Goods advertising is...

This paper analyzes the time-varying credibility of the Fed's inflation target in an empirical macro model with asymmetric information, where the public has to learn about the actual inflation target from the Fed's interest rate policy. To capture the evolving communication strategy of the Fed,...