Showing 1 - 10 of 122
Empirically, the commons are not as tragic as standard theory predicts. The predominant explanation for this finding is conditional cooperation. Yet many real life situations involve insiders, who are directly affected by a dilemma, and outsiders, who may be harmed if the insiders overcome the...
Persistent link: https://www.econbiz.de/10011116888
Traditionally, the Gambler's Fallacy is described as the belief that a sequence of independent outcomes over time should exhibit short-run reversals. The underlying psychological bias thought to drive this fallacy is Representativeness Bias: the idea that even a small sample of outcomes should...
Persistent link: https://www.econbiz.de/10011190119
We examine market behavior in a series of cobweb-like experiments. As in previous studies we find no cyclicality in the simple supply lag design with five players. Step by step we add investment lags and capacity vintages, and thus external validity to the basic design. As complexity increases,...
Persistent link: https://www.econbiz.de/10010594599
We use a natural field experiment to investigate the hypothesis that generosity is partly involuntary, by examining whether individuals tend to avoid opportunities to act generously. In Sweden, new recycling machines for bottles and cans with an option of donating the returned deposit to charity...
Persistent link: https://www.econbiz.de/10010702938
Prices and quantities converge to the theoretical competitive equilibria in continuous, double auction markets. The double auction is not a tatonnement mechanism. Disequilibrium trades take place. The absence of any influence of disequilibrium trades, which have the capacity to change the...
Persistent link: https://www.econbiz.de/10010719241
We study the impact of gender quotas on the acquisition of human capital. We assume that individuals’ formation of human capital is influenced by the prospect of landing high-pay top positions, and that these positions are regulated by gender-specific quotas. In the absence of quotas, women...
Persistent link: https://www.econbiz.de/10011261608
In this paper we investigate to what extent the decrease in the willingness to take risks with age can be traced to the cognitive aging process. We use data from the Survey of Health, Aging and Retirement in Europe (SHARE) that includes both a measure of financial risk preference and measures of...
Persistent link: https://www.econbiz.de/10011263905
We conduct a laboratory experiment with a constant-sum sender–receiver game and a sequential game of matching pennies with the same payoff structure to investigate the impact of individuals’ first- and second-order beliefs on truth-telling. While first-movers in matching pennies choose an...
Persistent link: https://www.econbiz.de/10011263922
In the classic certainty multiperiod, multigood demand problem, suppose preferences for current and past period consumption are separable from consumption in future periods. Then optimal demands can be determined from the standard two stage budgeting process, where optimal current period demands...
Persistent link: https://www.econbiz.de/10010776761
There is a schism within economics between the neoclassical and behavioral schools. A primary cause of the behavioral ascent is the experimental evidence of deviations between actual behavior and the neoclassical prediction of behavior. While behavioral scholars have documented these...
Persistent link: https://www.econbiz.de/10011048118