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points. The implications of this model are tested in an experiment in which participants have to make a consumption choice …
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transparency regimes affect deliberation in different ways but lead both to a breakdown of information aggregation. However … high enough. We test the model's key predictions in a laboratory experiment varying the level of transparency between …
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We propose a theory of ex post inefficient renegotiation that is based on loss aversion. When two parties write a long-term contract that has to be renegotiated after the realization of the state of the world, they take the initial contract as a reference point to which they compare gains and...
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