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Deviations from equilibrium bids in auctions can be related to inconsistent expectations with correct best replies (see Eyster and Rabin, 2005; Crawford and Iriberri, 2007) or correct expectations but small (perhaps quantal-response) mistakes in best replies (see Goeree et al., 2002). To distinguish...
Persistent link: https://www.econbiz.de/10010263873
Deviations from equilibrium bids in auctions can be related to inconsistent expectations with correct best replies (see Eyster and Rabin, 2005; Crawford and Iriberri, 2007) or correct expectations but small (perhaps quantal-response) mistakes in best replies (see Goeree et al., 2002). To distinguish...
Persistent link: https://www.econbiz.de/10005090584
In this paper we study equilibrium- and experimental bidding behaviour in first-price and second price auctions with outside options. We find that bidders do respond to outside options and to variations of common knowledge about competitors' outside options. However, overbidding in first-price...
Persistent link: https://www.econbiz.de/10005032028
In two-person generosity games the proposer's agreement payoffis exogenously given whereas that of the responder is endogenouslydetermined by the proposer's choice of the pie size. Earlier resultsfor two-person generosity games show that participants seem to caremore for eciency than for equity....
Persistent link: https://www.econbiz.de/10005870886
This paper aims to analize the role of personal identity in decision making. To this end, it starts by reviewing critically the growing literature on economics and identity. Considering the ambiguities that the concept of social identity poses, our proposal focuses on the concept of personal...
Persistent link: https://www.econbiz.de/10010263784
The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a theoretical framework to identify the factors that...
Persistent link: https://www.econbiz.de/10010263846
In-group favoritism in social dilemma situations is one of the main findings of studies in Social Identity Theory. We investigate what causes the in-group bias: is it due to mere group affiliation or, alternatively, is guilt-aversion a possible explanation? We induce group membership in a...
Persistent link: https://www.econbiz.de/10010263886
An advisor is supposed to recommend a financial product in the best interest of her client. However, the best product for the client may not always be the product yielding the highest commission (paid by product providers) to the advisor. Do advisors nevertheless provide truthful advice? If not,...
Persistent link: https://www.econbiz.de/10010269744
E-nstructions facilitates the use of electronic instructions in computerized laboratory experiments. This tool has been … experimental softwares which help developing and conducting experiments. This article provides a set of guidelines for the …
Persistent link: https://www.econbiz.de/10010271415
-specific cognitive capital. I draw implications for compensation practices in experiments as well as work settings. …
Persistent link: https://www.econbiz.de/10010276434