Showing 1 - 10 of 416
In this paper, we analyze a principal's optimal feedback policy in tournaments. We close agap in the literature by assuming the principal to be unable to commit to a certain policy atthe beginning of the tournament...
Persistent link: https://www.econbiz.de/10005861537
Within the setting of two simple two-person coordinationgames the formation of subjective strategies is observed experimentally.Though the structure of the game is unknown playersuse their actions in order to coordinate on a specific equilibrium.Strategies enable them to interpret the...
Persistent link: https://www.econbiz.de/10005866779
Bidding challenges learning theories since experiences with the same bid vary stochastically:the same choice can result in either a gain or a loss. In such an environment thequestion arises how the nearly universally documented phenomenon of loss aversion affectsthe adaptive dynamics. We analyze...
Persistent link: https://www.econbiz.de/10005866949
We calculate learning rates when agents are informed through both public andprivate observation of other agents’ actions. We provide an explicit solution forthe evolution of the distribution of posterior beliefs. When the private learningchannel is present, we show that convergence of the...
Persistent link: https://www.econbiz.de/10005868697
We analyse firms' sourcing decisions under institutional uncertainty in foreign countries. Firms can reduce their uncertainty by observing offshoring firms' behaviour. The model characterises a sequential offshoring equilibrium path, led by the most productive firms in the market. With multiple...
Persistent link: https://www.econbiz.de/10013470302
This paper investigates the impact of the largest rail strikes in German history on intercity buses - a then newly liberalised market. Using unique booking data of bus services, we exploit variation in rail service cancellations across routes to show that the disruption in rail transport...
Persistent link: https://www.econbiz.de/10014305038
This paper investigates the impact of the largest rail strikes in German history on intercity buses – a then newly liberalised market. Using unique booking data of bus services, we exploit variation in rail service cancellations across routes to show that the disruption in rail transport...
Persistent link: https://www.econbiz.de/10014377457
Do agents believe to be agreeing more with others in the long-run? This paper designs an experiment to study how cognitive abilities affect actual and perceived disagreement in a standard sequential belief updating task with public signals. We document a persistent gap in the perception of...
Persistent link: https://www.econbiz.de/10014467725
Attention is a pivotal resource in the modern economy and plays an increasingly prominent role in economic analysis. We summarize research on attention from both psychology and economics, placing a particular emphasis on its capacity to explain numerous documented violations of classical...
Persistent link: https://www.econbiz.de/10014469341
We examine how informational frictions impact schooling and work outcomes. To do so, we estimate a dynamic structural model where individuals face uncertainty about their academic ability and productivity, which respectively determine their schooling utility and wages. Our framework accounts for...
Persistent link: https://www.econbiz.de/10014469773