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Economists are increasingly turning to the experimental method as a means to estimate causal effects. By using randomization to identify key treatment effects, theories previously viewed as untestable are now scrutinized, efficacy of public policies are now more easily verified, and stakeholders...
Persistent link: https://www.econbiz.de/10013108249
We show that a measure of reciprocity derived from the Berg et al. (1995) trust game in a laboratory setting predicts the reciprocal behavior of the same subjects in a real-world situation. By using the Crowne and Marlowe (1960) social desirability scale, we do not find any evidence that a...
Persistent link: https://www.econbiz.de/10013148862
one mechanism yielding these dual patterns: false consensus. In the context of a trust game experiment, we show that … the values parents transmit to their children during their upbringing. In a second closely-related experiment, we show the …
Persistent link: https://www.econbiz.de/10013311922
, can affect outcomes. We explore the economics of revealing type in a simple laboratory experiment to learn about the …
Persistent link: https://www.econbiz.de/10012999468
We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment...
Persistent link: https://www.econbiz.de/10013068297
Individuals and asset managers trade aggressively, resulting in high volume in asset markets, even when such trading results in high risk and low net returns. Asset prices display patterns of predictability that are difficult to reconcile with rational expectations–based theories of price...
Persistent link: https://www.econbiz.de/10012999987
This paper studies, theoretically and empirically, the role of overconfidence in political behavior. Our model of overconfidence in beliefs predicts that overconfidence leads to ideological extremeness, increased voter turnout, and increased strength of partisan identification. Moreover, the...
Persistent link: https://www.econbiz.de/10013078592
Cognitive Economics is the economics of what is in people's minds. It is a vibrant area of research (much of it within Behavioral Economics, Labor Economics and the Economics of Education) that brings into play novel types of data—especially novel types of survey data. Such data highlight the...
Persistent link: https://www.econbiz.de/10013030618
Most economic analyses presume that there are limited differences in the prior beliefs of individuals, as assumption most often justified by the argument that sufficient common experiences and observations will eliminate disagreements. We investigate this claim using a simple model of Bayesian...
Persistent link: https://www.econbiz.de/10012760581
In quot;Unpacking the Household: Informal Property Rights Around the Hearthquot; (Yale Law Journal, 2006) Robert Ellickson argues that as long as members of a household expect their relationship to continue, norms, rather than law, will determine allocations among them. More specifically,...
Persistent link: https://www.econbiz.de/10012776853