In important situations, individual decision-making is systematically biased. Whendeciding (rather than consuming), extrinsic attributes of choice options are more salient thanintrinsic attributes. People overestimate extrinsic attributes and therefore put too much effortinto acquiring income...

Interdependencies in consumer behavior stem from either status-seeking consumption orcompliance with social norms. This paper analyzes how a consumption act changes froma means to signal the consumer’s status to a means of norm compliance. It is shown thatsuch a transformation can only be...

Advertisements provide consumers with knowledge about private products, whereas political information is required to provide voters with knowledge of public issues. Modern information technologies and globalization are increasing the exposure of individuals to information. Goods advertising is...

In this paper the importance and the effects of technological opportunities, stemming from academic research, on the innovation activities of firms in the German automobile supplyindustry are investigated.

Vorliegendes Arbeitspapier untersucht die Kooperationsneigung der deutschen Automobilzulieferindustrie.

Both conventional wisdom and leading academic research view pork barrel spendingas antithetical to responsible policymaking in times of crisis. In this paper we presentan alternative view. When agents are heterogeneous in their ideology and in theirinformation about the economic situation,...

In this paper, we revisit the association between happiness and inequality. We argue that the perceived fairness of the income generation process affects this association. Building on a two-period model of individual life-time utility maximization, we predict that persons with higher perceived...

This paper theoretically and empirically analyzes the interaction of emigration of highly skilled labor, an economy`s income gap to potential host economies of expatriates, and optimal public infrastructure investment. In a model with endogenous education and R&D investment decisions we show...

We use a static framework characterized by both moral hazard and holdup problems. In the model the optimal allocation of bargaining power balances these frictions. We examine the impact of improved monitoring on that optimal allocation and its impact upon effort, investment, profits and rents....

This article discusses how the theoretical perspective of ordonomics provides a frameworkfor better understanding and advancing the practice of social entrepreneurship.From an ordonomic perspective, the concept of social entrepreneurship offers a semanticinnovation (at the ideas level) whose...