Showing 1 - 10 of 731
lotteries, based on other evidence regarding numerical cognition, and test its ability to explain the choice frequencies that we … observe in a laboratory experiment …
Persistent link: https://www.econbiz.de/10012911706
The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates of the probability of a horse winning--longshots are overbet, while favorites are underbet. Neoclassical explanations of this phenomenon focus on rational gamblers who overbet...
Persistent link: https://www.econbiz.de/10013144509
under ambiguity, belief updating, and survey expectations about economic variables. In each of these domains, behavior in …. Building on existing models of noisy Bayesian cognition, we formally propose that cognitive uncertainty generates these … risk and ambiguity, belief updating, and survey expectations. Our framework makes predictions that we test using exogenous …
Persistent link: https://www.econbiz.de/10012858403
Empiricism in the sciences allows us to test theories, formulate optimal policies, and learn how the world works. In this manner, it is critical that our empirical work provides accurate conclusions about underlying data patterns. False positives represent an especially important problem, as...
Persistent link: https://www.econbiz.de/10013001219
This paper describes results of a pair of incentivized experiments on biases in judgments about random samples. Consistent with the Law of Small Numbers (LSN), participants exaggerated the likelihood that short sequences and random subsets of coin flips would be balanced between heads and tails....
Persistent link: https://www.econbiz.de/10012945615
When an upstream monopolist supplies several competing downstream firms, it may fail to monopolize the market because it is unable to commit not to behave opportunistically. We build on previous experimental studies of this well-known commitment problem by introducing communication. Allowing the...
Persistent link: https://www.econbiz.de/10012992661
This paper proposes a decision-theoretic framework for experiment design. We model experimenters as ambiguity …
Persistent link: https://www.econbiz.de/10012919161
Previous findings on punishment have focused on environments in which the outcomes are known with certainty. In this paper, we conduct experiments to investigate how punishment affects cooperation in a two-person stochastic prisoner's dilemma environment where each person can decide whether or...
Persistent link: https://www.econbiz.de/10013224395
Understanding whether labor market discrimination explains inferior labor market outcomes for many groups has drawn the attention of labor economists for decades – at least since the publication of Gary Becker's The Economics of Discrimination in 1957. The decades of research on discrimination...
Persistent link: https://www.econbiz.de/10012997905
This paper proposes a decision-theoretic framework for experiment design. We model experimenters as ambiguity …
Persistent link: https://www.econbiz.de/10012946499