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Willingness to pay (WTP) is known to be lower for remanufactured products than for comparable new products. Normative work to date has assumed that a consumer's WTP for a remanufactured product is a fraction, called discount factor, of the consumer's WTP for a corresponding new product, and that...
Persistent link: https://www.econbiz.de/10011952648
Heuristics Hypothesis (SHH) proposes that fast instinctive decision making promotes cooperation in social dilemmas. In this paper …
Persistent link: https://www.econbiz.de/10011458007
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We designed four observational learning experiments to identify the key channels that, along with Bayes-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in turn by subjects endowed with private signals of...
Persistent link: https://www.econbiz.de/10011789104
manipulate the balance of intuition and deliberation by relying on experimental manipulations as cognitive load. However, these … processes offers a straightforward test to determine whether cognitive load has been successfully induced, hence disentangling …
Persistent link: https://www.econbiz.de/10012249760
possess a toolkit of heuristics to make decisions under certainty, risk, subjective uncertainty, and true uncertainty (or … Knightian uncertainty). We outline recent advances in knowledge about the use of heuristics and departures from Bayesian …, founded on psychological work on the usefulness of certain heuristics, are based on serious misunderstandings …
Persistent link: https://www.econbiz.de/10011926917
This paper analyzes 12,596 wagering decisions of 6,064 contestants in the US game show Jeopardy!, focusing on the anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue in their wagering decision, even though there exists...
Persistent link: https://www.econbiz.de/10011526727
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Differences in cognitive sophistication and effort are at the root of behavioral heterogeneity in economics. To explain this heterogeneity, behavioral models assume that certain choices indicate higher cognitive effort. A fundamental problem with this approach is that observing a choice does not...
Persistent link: https://www.econbiz.de/10012006965
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