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dimension for dishonest decision-making and for the cognition process of the chance to deceive. We conduct a laboratory … experiment of self-serving deceptive behavior which combines two exogenously varied levels of reflection time with a cognition … time. More importantly, decomposing misreporting into its two components, i.e., the cognition process of the misreporting …
Persistent link: https://www.econbiz.de/10011723505
This paper studies the interplay between deadlines and cognitive limitations. We analyze an agent's decision to complete a one-off task under a deadline. Postponing the task can be beneficial for the agent; missing the deadline, however, leads to a drop in the agent's rewards. If the agent...
Persistent link: https://www.econbiz.de/10011757775
This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...
Persistent link: https://www.econbiz.de/10012509319
By means of a laboratory experiment, we show that, contrary to standard consumer theory, financially equivalent balance sheet profiles may be perceived as non fungible in a controlled frictionless environment with no probabilistic attributes. A large majority of subjects indeed have a bias in...
Persistent link: https://www.econbiz.de/10012138808
Procrastination is often attributed to time-inconsistent preferences but may also arise when individuals derive anticipatory utility from holding optimistic beliefs about their future effort costs. This study provides a rigorous empirical test for this notion of ‘motivated procrastination’....
Persistent link: https://www.econbiz.de/10014517966
Recent developments in economic theory model intertemporal choice decisions as problems of restraining one’s natural impulse to consume today. We use interventions that have been shown in the psychology literature to affect impulse control to examine whether this is indeed the case for...
Persistent link: https://www.econbiz.de/10010237286
interventions can be scaled up. In cooperation with a large public utility in Germany, we develop an energy savings application for … set themselves energy consumption targets. The roll-out of the app is promoted by a mass-marketing campaign and large … financial incentives. Results document low demand for the energy app in the general population and a tightly estimated null …
Persistent link: https://www.econbiz.de/10012260629
Contributing to the literature on the consequences of behavioral biases for market outcomes and institutional design, we contrast producer liability and minimum quality standard regulation as alternative means of social control of product-related torts when consumers are heterogeneously...
Persistent link: https://www.econbiz.de/10010413791
We contrast alternative liability rules for social control of product risks when heterogeneous consumers considering purchasing a durable good due to cognitive errors and biases mispredict future product benefits and, thus, the extent of future product usage. Since the expected consumer harm...
Persistent link: https://www.econbiz.de/10011475973
Rational choice theories assume that voters accurately assess the outcomes of policies. However, many important policies—such as regulating prices and introducing Pigouvian taxation—yield outcomes through indirect or equilibrium effects that may differ from their direct effects. Citizens may...
Persistent link: https://www.econbiz.de/10014578562