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We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011557745
Interactions between players with private information and opposed interests are often prone to bad advice and inefficient outcomes, e.g. markets for financial or health care services. In a deception game we investigate experimentally which factors could improve advice quality. Besides advisor...
Persistent link: https://www.econbiz.de/10011530053
An advisor is supposed to recommend a financial product in the best interest of her client. However, the best product for the client may not always be the product yielding the highest commission to the advisor. Do advisors nevertheless provide truthful advice? If not, will a voluntary or...
Persistent link: https://www.econbiz.de/10011530061
The market for retail financial products (e.g. investment funds or insurance) is marred by information asymmetries. Clients are not well informed about the quality of these products. They have to rely on the recommendations of advisors. Incentives of advisors and clients may not be aligned, when...
Persistent link: https://www.econbiz.de/10011530065
Interactions between players with private information and opposed interests are often prone to bad advice and inefficient outcomes, e.g. markets for financial or health care services. In a deception game we investigate experimentally which factors could improve advice quality. Besides advisor...
Persistent link: https://www.econbiz.de/10011697162
Interactions between players with private information and opposed interests are often prone to bad advice and inefficient outcomes, e.g. markets for financial or health care services. In a deception game we investigate experimentally which factors could improve advice quality. Besides advisor...
Persistent link: https://www.econbiz.de/10011881706
decision makers in the family and the society. We test these alternative hypotheses running Dictators experiments in Italy, a …
Persistent link: https://www.econbiz.de/10010488294
We study the origins of support for gender-related affirmative action (AA) in two pre-registered online experiments (N … treatments to disentangle the preference for AA stemming from i) perceived gender differences in productivity, ii) beliefs about … successfully altering beliefs about expected productivity differences. Our results suggest that AA choice reflects a more intrinsic …
Persistent link: https://www.econbiz.de/10012591868
We examine empirically whether individuals evaluating used cars efficiently aggregate all relevant information on its constituent characteristics. Based on detailed field data on more than 80,000 used car offers in a large online marketplace, we provide evidence for biased information...
Persistent link: https://www.econbiz.de/10010338953
, their beliefs, preferences, and intentions to switch providers. Crucially, I can link their intentions with actual switching … consumers leaves money on the table by not switching. The low switching rates cannot be explained by biased beliefs or high … procrastinate and quickly forget to switch. Based on these findings, I suggest that simply drawing attention to information or …
Persistent link: https://www.econbiz.de/10014463078