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We study a psychologically based foundation for choice errors. The decision maker applies a preference ranking after forming a 'consideration set' prior to choosing an alternative. Membership of the consideration set is determined both by the alternative specific salience and by the rationality...
Persistent link: https://www.econbiz.de/10010269842
Overconfidence is a well-established bias in which someone's subjective confidence in their own judgments is systematically greater than their objective accuracy. There is abundant anecdotal evidence that overconfident people increase their exposure to risk. In this paper, we test whether...
Persistent link: https://www.econbiz.de/10010531705
We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximises a preference relation within the set of considered alternatives....
Persistent link: https://www.econbiz.de/10010289884
Overconfidence is a well-established bias in which someone's subjective confidence in their own judgments is systematically greater than their objective accuracy. There is abundant anecdotal evidence that overconfident people increase their exposure to risk. In this paper, we test whether...
Persistent link: https://www.econbiz.de/10011269609
We study a psychologically based foundation for choice errors. The decision maker applies a preference ranking after forming a 'consideration set' prior to choosing an alternative. Membership of the consideration set is determined both by the alternative specific salience and by the rationality...
Persistent link: https://www.econbiz.de/10008550521
We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximises a preference relation within the set of considered alternatives....
Persistent link: https://www.econbiz.de/10010697237
In this paper we investigate the relationship between earnings and charitable giving. We set up a real effort … want to donate a share of their earnings to a charity of their choice. We find that, despite large differences in earnings … givers in the two groups give the same share of their total earnings. Charities receive the same average donation from …
Persistent link: https://www.econbiz.de/10010293189
that high school achievement measures can account for much of the racial gaps in BA completion and earnings and some of the … gaps by family background, though they account for little of the continuing gender gap favoring young men in earnings. …
Persistent link: https://www.econbiz.de/10010293246
market. Our difference-in-difference model estimates whether the earnings difference between individuals with high and low … grades differs between central and local exams. We find that the earnings premium for a one standard-deviation increase in …
Persistent link: https://www.econbiz.de/10011307322
career success as denoted by occupational status, linked to earnings. This is the first application of this analysis to New … native-born populations and provide evidence on the mediating effect of occupational attainment on earnings. Our analyses …, and much of its effect on earnings is through occupational attainment; different immigrant groups have differentiable …
Persistent link: https://www.econbiz.de/10011401622