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This study analyzes investors' perception of placebic information and its impact on stock price estimates. We initiate a questionnaire-based stock price forecast competition among 196 undergraduate students in business administration. We show that placebic information increases the perceived...
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Does social identity affect how decision makers consume and digest new information? We study this question through a theoretically informed experiment, employing a variant of the sender receiver game in which receivers can purchase reports from up to two senders. Depending on senders'...
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stable climate coalition is large in the Paris Agreement and small in the Kyoto Protocol, the emissions reductions of a … single coalition country are much more pronounced in the Kyoto Protocol, so that this per-country-emissions-reduction effect … outweighs the disadvantageous coalition-size effect. …
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Why do people appear to forgo information by sorting into “echo chambers”? We construct a highly tractable multi-sender, multi-receiver cheap talk game in which players choose with whom to communicate. We show that segregation into small, homogeneous groups can improve everybody’s...
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