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A Theory of Fairness, Competition and Cooperation

Fehr, Ernst; Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 1998

There is strong evidence that people exploit their bargaining power in competitive markets but not in bilateral bargaining situations. There is also strong evidence that people exploit free-riding opportunities in voluntary cooperation games. Yet, when they are given the opportunity to punish...

Persistent link: https://www.econbiz.de/10005504682

Incomplete Contracts and Firm Boundaries: New Directions

Dessein, Wouter - C.E.P.R. Discussion Papers - 2012

which managerial direction and bureaucratic decision-making play a key role. Merging a number of existing incomplete …

Persistent link: https://www.econbiz.de/10011083406

Adaptation Can Help Mitigation: An Integrated Approach to Post-2012 Climate Policy

Bosello, Francesco; Carraro, Carlo; De Cian, Enrica - C.E.P.R. Discussion Papers - 2012

policy measures, adaptation will be needed to address climate related damages. What is the role of adaptation in this setting … adaptation and mitigation expenditures in a cost-effective setting in which countries cooperate to achieve a long … different adaptation modes (reactive and anticipatory), mitigation, and capacity building to analyse the optimal portfolio of …

Persistent link: https://www.econbiz.de/10011083452

The New Stylized Facts About Income and Subjective Well-Being

Sacks, Daniel W.; Stevenson, Betsey; Wolfers, Justin - C.E.P.R. Discussion Papers - 2013

In recent decades economists have turned their attention to data that asks people how happy or satisfied they are with their lives. Much of the early research concluded that the role of income in determining well-being was limited, and that only income relative to others was related to...

Persistent link: https://www.econbiz.de/10011083711

Framing Effects in Political Decision Making: Evidence From a Natural Voting Experiment

Bütler, Monika; Maréchal, Michel André - C.E.P.R. Discussion Papers - 2007

This paper analyzes a recent ballot in which two virtually identical popular initiatives, both demanding a decrease in the legal age of retirement in Switzerland, led to differences in approval rates of nearly seven percentage points. Based on this unique natural experiment, the existence of...

Persistent link: https://www.econbiz.de/10005504768

Reason-Based Choice: A Bargaining Rationale for the Attraction and Compromise Effects

de Clippel, Geoffroy; Eliaz, Kfir - C.E.P.R. Discussion Papers - 2009

This paper proposes a model of boundedly rational choice that explains the well known attraction and compromise effects. Choices in our model are interpreted as a cooperative solution to a bargaining problem among an individual’s conflicting dual selves. We axiomatically characterize a unique...

Persistent link: https://www.econbiz.de/10004976794

Boundedly Rational Dynamic Programming: Some Preliminary Results

Gabaix, Xavier - C.E.P.R. Discussion Papers - 2012

rational features in which the decision-maker (DM) builds a simplified representation of the world. The model allows to model …

Persistent link: https://www.econbiz.de/10011083499

Price Distortions in High-Frequency Markets

Steiner, Jakub; Stewart, Colin - C.E.P.R. Discussion Papers - 2014

We study the effect of frequent trading opportunities and categorization on pricing of a risky asset. Frequent opportunities to trade can lead to large distortions in prices if some agents forecast future prices using a simplified model of the world that fails to distinguish between some states....

Persistent link: https://www.econbiz.de/10011083554

“At least I didn’t lose money” Nominal Loss Aversion Shapes Evaluations of Housing Transactions

Stephens, Thomas A; Tyran, Jean-Robert - C.E.P.R. Discussion Papers - 2012

Loss aversion is one of the most robust findings to have emerged from behavioral economics. Surprisingly little attention, however, has been devoted to nominal loss aversion, the interaction of loss aversion and money illusion. People tend to think of transactions in terms of their nominal...

Persistent link: https://www.econbiz.de/10011083826

Add-on Pricing, Naive Consumers, and the Hidden Welfare Costs of Education

Kosfeld, Michael; Schüwer, Ulrich - C.E.P.R. Discussion Papers - 2011

Previous research shows that firms shroud high add-on prices in competitive markets with naive consumers leading to inefficiency. We analyze the effects of regulatory intervention via educating naive consumers on equilibrium prices and welfare. Our model allows firms to shroud, unshroud, or...

Persistent link: https://www.econbiz.de/10009367427