Showing 1 - 10 of 20
We propose a novel method to model an agent who is imperfectly attentive in the sense that she may consider only some of the alternatives available. Our methodology departs from the standard 'revealed preference' one: we make plausible assumptions on the values to the imperfectly attentive agent...
Persistent link: https://www.econbiz.de/10011381005
We consider two-stage shortlisting procedures in which the menu of alternatives is first pruned by some process or criterion and then a binary relation is maximized. Given a particular first-stage process, our main result supplies a necessary and sufficient condition for choice data to be...
Persistent link: https://www.econbiz.de/10010368178
Several recent models of choice build on the idea that decision makers are more likely to choose an option if its attributes stand out compared to the attributes of the available alternatives. One example is the model of focusing by Köszegi and Szeidl (2013) where decision makers focus...
Persistent link: https://www.econbiz.de/10013208758
In the context of the two-stage threshold model of decision making, with the agent's choices determined by the interaction of three "structural variables," we study the restrictions on behavior that arise when one or more variables are exogenously known. Our results supply necessary and...
Persistent link: https://www.econbiz.de/10011796514
changing preferences and focusing attention. The resulting Limited Attention Status Quo Bias model can explain both the finding … both attention and preference channels are necessary to explain the impact of status quo on choice. …
Persistent link: https://www.econbiz.de/10011526710
attention in ways that distort decision-making and trap people in poverty? We examine these issues using real-life shocks faced … reallocate attention to scarce-resource tasks. These results broaden our understanding of the impacts of uncertainty by exploring …
Persistent link: https://www.econbiz.de/10012166458
We propose a model of competitive attention based on two key premises: i) People have limited information processing …
Persistent link: https://www.econbiz.de/10012513583
Relative performance evaluation (RPE) is, at least on paper, enjoying widespread popularity in determining the level of executive compensation. Yet existing empirical evidence of RPE is decidedly mixed. Two principal explanations are held responsible for this discord. A constructional challenge...
Persistent link: https://www.econbiz.de/10011420557
their costs are below the expected mean cost. Disclosure reduces consumer surplus when the disclosing firm's costs are below … the expected mean cost. The effect of disclosure on social welfare depends on the parameters of the problem. Finally, I … analyze the incentive of firms to agree to exchange information when disclosure exposes a firm to the risk of antitrust …
Persistent link: https://www.econbiz.de/10010334280
Relative performance evaluation (RPE) is, at least on paper, enjoying widespread popularity in determining the level of executive compensation. Yet existing empirical evidence of RPE is decidedly mixed. Two principal explanations are held responsible for this discord. A constructional challenge...
Persistent link: https://www.econbiz.de/10011663172