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identity (in-group bias). While both phenomena involve some degree of discrimination towards others, a systematic study of … games with either an in-group or an out-group member. Wend strong evidence of in-group bias when agents are matched … exogenously. When agents can affect who they are matched with, we find strong evidence of homophily. However, in-group biases …
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identity (in-group bias). While both phenomena involve some degree of discrimination towards others, a systematic study of … games with either an in-group or an out-group member. Wend strong evidence of in-group bias when agents are matched … exogenously. When agents can affect who they are matched with, we find strong evidence of homophily. However, in-group biases …
Persistent link: https://www.econbiz.de/10014168537
We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more risk-averse to imminent than to distant...
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