This paper studies the design of optimal fiscal policy when a government that fully trusts the probability model of government expenditures faces a fearful public that forms pessimistic expectations. We identify two forces that shape our results. On the one hand, the government has an incentive...

Motivated by the literature on ``choice overload'', we study a boundedly rational agent whose choice behavior admits a \textit{monotone threshold representation}: There is an underlying rational benchmark, corresponding to maximization of a utility function $v$, from which the agent's choices...

We analyze the impact of misperceptions of the unemployment rate on individual wages, using the European Social Survey. We follow a threefold strategy to tackle potential endogeneity problems, as the model includes the following: controls for worker's ability, the regional unemployment rate, and...

Die Verhaltensökonomie und ihre praktischen Implikationen geraten immer stärker in den Fokus auch der deutschen Politik. Individuelle Entscheidungen sollen im Sinne eines "libertären Paternalismus" sanft beeinflusst werden. Die 'Nudges' bestehen in Standardvorgaben, Selbstbindungen und der...

Although the effect of monetary sunk costs on decision-making is widely discussed, research is still fragmented, and results are sometimes controversial. One reason for this incomplete picture is the missing differentiation between the effect of sunk costs on utilization and progress decisions...

Um den Klimawandel zu begrenzen, sind Anstrengungen auf globaler Ebene notwendig. Um sich an die Folgen des Klimawandels anzupassen, sind jedoch auch individuelle Strategien zur Risikovorsorge effektiv. Allerdings stehen frühzeitigen Anpassungsaktivitäten entgegen, dass die möglichen...

This paper deals with approving the effect of both a governance system and individual cognitive and emotional features in the financial analysis of a firms' innovation decision. After discussing the theoretical linking between ownership concentration and the CEO's attitude and behavior, we are...

We model a scenario in which there are three types of investors: fundamentalists, speculators, and trend-followers and an intermediary who cares about his reputation. Fundamentalists are rational investors with long horizons who are interested in the dividend stream. Speculators are rational...

The ability and willingness of health care workers to report for work during a pandemic are essential to pandemic response. The main contribution of this article is to examine the relationship between risk perception of personal and work activities and willingness to report for work during an...

Der Trend zur Projektifizierung von Arbeit und Organisation stellt neue Anforderungen an die Arbeits- und Interessenregulation. Basierend auf zwei am SOFI durchgeführte Studien wird die Kontrahierung der Arbeitsleistung qualifizierter Angestellter in F+E-Projekten der Automobil- und...