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We propose a novel approach to modelling time preferences, based on a cognitive shortcoming of human decision makers: the perception of future events becomes increasingly ?blurred? as the events are pushed further in time. We axiomatise a class of preference representations which can be...
Persistent link: https://www.econbiz.de/10010261983
Goals are an important source of motivation. But little is known about why and how people set them. We address these questions in a model based on two stylized facts from psychology and behavioral economics: i) Goals serve as reference points for performance. ii) Present-biased preferences...
Persistent link: https://www.econbiz.de/10010268967
In recent years, many social scientists have claimed that trust plays an important role in economic and social transactions. Despite its proposed importance, the measurement and the definition of trust seem to be not fully settled, and the identification of the exact role of trust in economic...
Persistent link: https://www.econbiz.de/10010269174
vary. The experiment implements two marginal return types, low and high, and uses the information that members have about … information structure when persons with different abilities contribute to a joint project, as in the context of teamwork or …
Persistent link: https://www.econbiz.de/10010278412
We investigated experimentally whether people can be induced to believe in a non-existent expert, and subsequently pay for what can only be described as transparently useless advice about future chance events. Consistent with the theoretical predictions made by Rabin (2002) and Rabin and Vayanos...
Persistent link: https://www.econbiz.de/10010282207
, restrictions on purchase and use, providing information and restricting advertising. The chapter concludes with suggestions for …
Persistent link: https://www.econbiz.de/10009024597
, restrictions on purchase and use, providing information and restricting advertising. The chapter concludes with suggestions for …
Persistent link: https://www.econbiz.de/10010278806
People use information about their ability to choose tasks. If more challenging tasks provide more accurate information … information leads people to choose tasks that raise expected output, however extreme overconfidence leads people to undertake … is both pervasive and advantageous and that people maintain such beliefs by underweighting new information about their …
Persistent link: https://www.econbiz.de/10010269111
Employers structure pay and employment relationships to mitigate agency problems. A large literature in economics documents how the resolution of these problems shapes personnel policies and labor markets. For the most part, the study of agency in employment relationships relies on highly...
Persistent link: https://www.econbiz.de/10010272684
The public finance literature demonstrates the equivalence between consumption and laborincome (wage) taxes. We introduce an experimental paradigm in which individuals make real labor-leisure choices and spend their earned income on real goods. We use this paradigm to test whether a labor-income...
Persistent link: https://www.econbiz.de/10010274549