Showing 1 - 10 of 765
The winner's curse is a well-known deviation from rational self-interest in decision-making under asymmetric information. Yet, most prominent explanations for the curse have experimentally been ruled out so far. In particular, the curse did neither seem to emanate from a lack of experience with...
Persistent link: https://www.econbiz.de/10010281650
We analyze the offering, asking, and granting of help or other benefits as a three-stage game with bilateral private information between a person in need of help and a potential help-giver. Asking entails the risk of rejection, which can be painful: since unawareness of the need can no longer be...
Persistent link: https://www.econbiz.de/10014076462
We study equilibrium reporting behavior in Fischbacher and Föllmi-Heusi (2013)-type cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of...
Persistent link: https://www.econbiz.de/10012902152
We consider a model in which a principal may delegate the choice of a project to a better informed agent. The preferences of the agent and the principal about which project should be undertaken may be discordant. Moreover, the agent benefits from being granted more discretion in the project...
Persistent link: https://www.econbiz.de/10012902878
We study how people think others update their beliefs upon encountering new evidence. We find that when two individuals share the same prior, one believes that new evidence cannot systematically shift the other's beliefs in either direction (Martingale property). When the two have different...
Persistent link: https://www.econbiz.de/10015171664
The paper analyzes the role of the structure of communication - i.e. who is talking with whom - on the choice of messages, on their credibility and on actual play. We run an experiment in a three-player coordination game with Pareto ranked equilibria, where a pair of agents has a profitable...
Persistent link: https://www.econbiz.de/10010418867
The winner's curse is a well-known deviation from rational self-interest in decision-making under asymmetric information. Yet, most prominent explanations for the curse have experimentally been ruled out so far. In particular, the curse did neither seem to emanate from a lack of experience with...
Persistent link: https://www.econbiz.de/10009229644
We study equilibrium reporting behavior in Fischbacher and Föllmi-Heusi (2013) type cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of...
Persistent link: https://www.econbiz.de/10011603130
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
Do individuals anticipate present bias in others? This paper jointly investigates beliefs about one's own and others' present bias. In an online experiment, participants engaged in a real-effort task display little awareness of their own present bias, but anticipate present bias in others....
Persistent link: https://www.econbiz.de/10012936520