Showing 1 - 10 of 20
Incentivized experiments are commonly used to estimate marginal rate of intertemporal substitution (MRS) in the lab and in the ?eld, and to make inferences about subject’s time preference. This paper considers the implications of an integrated model of behavior in which individuals are subject...
Persistent link: https://www.econbiz.de/10011196580
This paper experimentally tests the predictions of a principal-agent model in which the agent has biased beliefs about his ability. Overconfident workers are found to earn lower wages than underconfident ones because they overestimate their expected payoff, and principals adjust their offers...
Persistent link: https://www.econbiz.de/10010815842
Overconfident: How Economic and Health Fault Lines Left the Middle East and North Africa Ill-Prepared to Face COVID This report examines the region's economic prospects in 2021, forecasting that the recovery will be both tenuous and uneven as per capita GDP level stays below pre-pandemic levels....
Persistent link: https://www.econbiz.de/10012700807
In many low- and middle-income countries, health coverage has improved dramatically in the past two decades, but health outcomes have not. As such, effective coverage-a measure of service delivery that meets a minimum standard of quality-remains unacceptably low. Improving Effective Coverage in...
Persistent link: https://www.econbiz.de/10013414019
We introduce and axiomatically characterize a model of status quo bias in which the status quo affects choices by both changing preferences and focusing attention. The resulting Limited Attention Status Quo Bias model can explain both the finding that status quo bias is more prevalent in larger...
Persistent link: https://www.econbiz.de/10011194243
People may be uncertain about future preferences, leading to both a preference for flexibility in choice between menus and stochastic choice from menus. This paper describes an experimental test of preference uncertainty in a realeffort task. We observe subjects’ preferences over menus of work...
Persistent link: https://www.econbiz.de/10011194244
We study the relation between ambiguity aversion and the Allais paradox. To this end, we introduce a novel denition of hedging which applies to objective lotteries as well as to uncertain acts, and we use it to dene a novel axiom that captures a preference for hedging which generalizes the one...
Persistent link: https://www.econbiz.de/10011196608
We develop a revealed preference test for optimal acquisition of costly information. The test encompasses models of rational inattention, sequential signal processing, and search. We provide limits on the extent to which attention costs can be recovered from choice data. We experimentally elicit...
Persistent link: https://www.econbiz.de/10010737391
Persistent link: https://www.econbiz.de/10010878523
The neurotransmitter dopamine has been found to play a crucial role in choice, learning, and belief formation. The best-developed current theory of dopaminergic function is the "reward prediction error" hypothesis-that dopamine encodes the difference between the experienced and predicted...
Persistent link: https://www.econbiz.de/10005690922