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Afriat's theorem for general budget sets

Forges, Françoise; Minelli, Enrico - 2006

Afriat (1967) showed the equivalence of the strong axiom of revealed preference and the existence of a solution to a set of linear inequalities. From this solution he constructed a utility function rationalizing the choices of a competitive consumer. We extend Afriat's theorem to a class of...

Persistent link: https://www.econbiz.de/10010263900

Persuading consumers with social attitudes

Buehler, Stefan; Halbheer, Daniel - 2011

This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers have heterogeneous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive...

Persistent link: https://www.econbiz.de/10010274911

Media market concentration, advertising levels, and ad prices

Anderson, Simon P.; Foros, Oystein; Kind, Hans Jarle; … - 2011

Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and...

Persistent link: https://www.econbiz.de/10010280642

Imitation and the evolution of Walrasian behavior: theoretically fragile but behaviorally robust

Apesteguia, José; Huck, Steffen; Oechssler, Jörg; … - 2008

A well-known result by Vega-Redondo (1997) implies that in symmetric Cournot oligopoly, imitation leads to the Walrasian outcome where price equals marginal cost. In this paper, we show that this result is not robust to the slightest asymmetry in fixed costs. Instead of obtaining the Walrasian...

Persistent link: https://www.econbiz.de/10010270592

Good News Is Not a Sufficient Condition for Motivated Reasoning

Thaler, Michael - 2024

People often receive good news that makes them feel better about the world around them, or bad news that makes them feel worse about it. This paper studies how the valence of news affects belief updating, absent functional and ego-relevant factors. Using experiments with over 1,500 participants...

Persistent link: https://www.econbiz.de/10014534346

Are income and consumption taxes ever really equivalent?: evidence from a real-effort experiment with real goods

Blumkin, Tomer; Ruffle, Bradley J.; Ganun, Yosef - 2008

The public finance literature demonstrates the equivalence between consumption and labor income (wage) taxes. We construct an environment in which individuals make real labor-leisure choices and spend their earned income on real goods. We use this experimental framework to test whether a labor...

Persistent link: https://www.econbiz.de/10010264286

Strategic Choices for Redistribution and the Veil of Ignorance: Theory and Experimental Evidence

Gerber, Anke; Nicklisch, Andreas; Voigt, Stefan - 2013

We provide experimental evidence on the emergence of redistributive societies. Individuals first vote on redistribution by feet and then learn their productivity and invest. We vary the individuals' information about their productivities at the time when they choose a distribution rule and find...

Persistent link: https://www.econbiz.de/10010328802

How do incentives affect creativity?

Eckartz, Katharina; Kirchkamp, Oliver; Schunk, Daniel - 2012

We compare performance in a word based creativity task under three incentive schemes: a flat fee, a linear payment and a tournament. Furthermore, we also compare performance under two control tasks (Raven's advanced progressive matrices or a number-adding task) with the same treatments. In all...

Persistent link: https://www.econbiz.de/10010291555

An experimental study on the effects of communication, credibility, and clustering in network games

Charness, Gary; Feri, Francesco; Meléndez-Jiménez, … - 2019

networks, such coordination may be very difficult to achieve and may depend on the communication technology and the network … structure. We examine how pre-play communication and clustering within networks affect coordination in a challenging … experimental game on eight-person networks. Free-form chat is enormously effective in achieving the non-equilibrium efficient …

Persistent link: https://www.econbiz.de/10012052765

All It Takes Is One: The Effect of Weakest-Link and Summation Aggregation on Public Good Provision under Threshold Uncertainty

Carlsson, Fredrik; Ek, Claes; Lange, Andreas - 2021

We report experimental evidence on the voluntary provision of public goods under threshold uncertainty. By explicitly comparing two prominent technologies, summation and weakest link, we show that uncertainty is particularly detrimental to threshold attainment under weakest link, where low...

Persistent link: https://www.econbiz.de/10012799757