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Consideration Sets and Competitive Marketing

Eliaz, Kfir; Spiegler, Ran - C.E.P.R. Discussion Papers - 2009

perception of what is relevant to their decision problem. They apply well-defined preferences to a “consideration set”, which is …

Persistent link: https://www.econbiz.de/10008528545

Precautionary price stickiness

Costain, James; Nakov, Anton - C.E.P.R. Discussion Papers - 2014

This paper proposes a model in which retail prices are sticky even though firms can always change their prices at zero cost. Instead of imposing a "menu cost", we assume that more precise decisions are more costly. In equilibrium, firms optimally make some errors in price-setting, thus...

Persistent link: https://www.econbiz.de/10011083997

Risking Other People’s Money

Andersson, Ola; Holm, Håkan J.; Tyran, Jean-Robert; … - C.E.P.R. Discussion Papers - 2013

We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our … with tournament incentives. Compared to a baseline condition without such incentives, we find that the decision makers …

Persistent link: https://www.econbiz.de/10011084365

One Person, Many Votes: Divided Majority and Information Aggregation

Bouton, Laurent; Castanheira, Micael - C.E.P.R. Discussion Papers - 2008

This paper compares the properties of three electoral systems when voters have imperfect information. Imperfect information blurs voter decisions and may divorce the electoral outcome from the true preferences of the electorate. The challenge for electoral design is therefore to translate the...

Persistent link: https://www.econbiz.de/10005662251

On the (Non) Paradox of (Not) Voting

Castanheira, Micael - C.E.P.R. Discussion Papers - 2002

Why do people vote? This question received a lot of attention for more than thirty years, and yet remains unanswered. In this Paper, we take stock of existing empirical regularities and argue that we can use them to improve the model of instrumental voting. Once this is done, we show that purely...

Persistent link: https://www.econbiz.de/10005791962

Network Structure and Strategic Investments: An Experimental Analysis

Rosenkranz, Stephanie; Weitzel, Utz - C.E.P.R. Discussion Papers - 2008

This paper analyzes the effects of network positions and individual risk attitudes on individuals' strategic decisions in an experiment where actions are strategic substitutes. The game theoretic basis for our experiment is the model of Bramoullé and Kranton (2007). In particular, we are...

Persistent link: https://www.econbiz.de/10005136539

Rebate or Bait? A Model of Regret and Time Inconsistency in Consumer Behaviour

Drago, Francesco; Kadar, Dora - C.E.P.R. Discussion Papers - 2006

In this paper we develop a theory of time-inconsistency and regret that is motivated by evidence on a 'price … future self-control problems and the sunk-cost effect (regret). We assume that agents deviating from their past choices … suffer a certain emotional disutility from having brought a bad decision in the past and that this emotional disutility is …

Persistent link: https://www.econbiz.de/10005114356

Testing for Reference Dependence: An Application to the Art Market

Beggs, Alan; Graddy, Kathryn - C.E.P.R. Discussion Papers - 2005

This paper tests for reference dependence, using data from Impressionist and Contemporary Art auctions. We distinguish reference dependence based on ‘rule of thumb’ learning from reference dependence based on ‘rational’ learning. Furthermore, we distinguish pure reference dependence from...

Persistent link: https://www.econbiz.de/10005661640

Dynamic Choice, Independence, and Emotions

Hopfensitz, Astrid; Winden, Frans A.A.M. van - C.E.P.R. Discussion Papers - 2007

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision but before the resolution of the investment risk; (iii) after the resolution of the investment … experienced emotions influence decision making. …

Persistent link: https://www.econbiz.de/10005136625

Measuring Risk Attitudes in a Natural Experiment: Data from the Television Game Show LINGO

Beetsma, Roel; Schotman, Peter C - C.E.P.R. Discussion Papers - 1998

various models using transformations of the ‘true’ probabilities to decision weights. The estimated degree of risk aversion …

Persistent link: https://www.econbiz.de/10005661826