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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
This Paper studies a game of strategic experimentation with two-armed bandits whose risky arm might yield a pay-off only after some exponentially distributed random time. Because of free-riding, there is an inefficiently low level of experimentation in any equilibrium where the players use...
Persistent link: https://www.econbiz.de/10005124141
becomes a more accurate signal of their ability. Elections reduce the learning effect, and the reduction in this effect may …
Persistent link: https://www.econbiz.de/10005792465
We analyse the consumption strategy of a dynamically inconsistent individual for goods that provide an immediate benefit and a delayed cost. The agent has incomplete information on the cost inherent to each unit of consumption and partially learns this value anytime he consumes. We show that, by...
Persistent link: https://www.econbiz.de/10005504250
. We consider a dynamic game in which firms improve both a new and a rival old technology while learning about the relative …
Persistent link: https://www.econbiz.de/10005504449
the Phillips curve the less does optimal policy aim towards learning. …
Persistent link: https://www.econbiz.de/10005497983
We analyse households’ responses to an unanticipated change in consumption opportunities and evaluate their implications for the nature and formation of preferences. We study the tariff experiment conducted by South Central Bell where local telephone measured tariffs were introduced for the...
Persistent link: https://www.econbiz.de/10005498107
We introduce learning into a Hotelling model of a non-renewable resource market. By combining learning and scarcity we … add significantly to the dynamics implied by learning and substantially enhance the volatility of commodity prices. In our … learning model we show how a self confirming equilibrium exists but is not constant over time. As scarcity increases the SCE …
Persistent link: https://www.econbiz.de/10004973966
We study dynamic moral hazard where principal and agent are symmetrically uncertain about job difficulty. Since effort is unobserved, shirking leads the principal to believe that the job is hard, increasing the agent's continuation value. So deterring shirking requires steeper incentives, which...
Persistent link: https://www.econbiz.de/10011083528
model combining the learning aspect of experience goods with reference-dependent preferences, we setup a field experiment in … Northern Uganda in which three health products differing in their scope for learning were initially offered either for free or … for sale at market prices. In line with prior studies, when the product has potential for positive learning, we do not …
Persistent link: https://www.econbiz.de/10011083717