This article describes important determinants of the current financial crisis. In particular, the text focuses on the bounded rationality of banks which contributes to the credit cycle. The credit cycle is the mechanism that links the present financial crisis with earlier crisis. Shortcomings on...

Putting effort into quality management evidently generates improvements in quality. However, such efforts come with a psychological burden. Working under quality pressure, i.e., extending diligence is burdensome. We hypothesize that this burden is valued differently in different cultures. This...

This study investigates the factors that make people want to hold cryptocurrency. We find that survey respondents from the U.S. will more likely hold cryptocurrency in the future the more they expect cryptocurrency to replace government money, to increase transparency in monetary affairs, and to...

This article describes important determinants of the current financial crisis. In particular, the text focuses on the bounded rationality of banks which contributes to the credit cycle. The credit cycle is the mechanism that links the present financial crisis with earlier crisis. Shortcomings on...

This paper explores why expectations elicited from corporate decision-makers may fall short of the rational expectations ideal: the formation of an informed forecast may just not be part of the optimal management of uncertainty. The analysis of an investment decision shows that when forecasting...

This paper states that the strong biases found in survey expectations do not necessarily distort economic decisions. An econometric analysis of price and profit data suggests that Swiss manufacturers do not base their production decisions on the forecasts they supply to the surveying...

This paper shows that heterogeneity of expectations matters. The individual differences studied concern the assessment of the input-output relationship. Output clearly declines with rising expectations errors. This occurs even - and strongly - when there are equal numbers of over- and...