Showing 1 - 10 of 317
We study optimal price discrimination when a monopolist faces a continuum of consumers with reference-dependent preferences. A consumer's valuation for product quality consists of an intrinsic valuation affected by a private state signal (type), and a gain-loss valuation that depends on...
Persistent link: https://www.econbiz.de/10011599574
We study two-stage choice procedures in which the decision maker first preselects the alternatives whose values according to a criterion pass a menu-dependent threshold, and then maximizes a second criterion to narrow the selection further. This framework overlaps with several existing models...
Persistent link: https://www.econbiz.de/10011599502
This paper investigates how the passage of time affects trust, trustworthiness, and cooperation. We use a hybrid lab and online experiment to provide the first evidence for the persistent power of communication. Even when 3 weeks pass between messages and actual choices, communication raises...
Persistent link: https://www.econbiz.de/10012920309
This paper experimentally investigates cooperative game theory from a normative perspective. Subjects designated as Decision Makers express their view on what is fair for others, by recommending a payoff allocation for three subjects (Recipients) whose substitutabilities and complementarities...
Persistent link: https://www.econbiz.de/10014151824
We replicate the essentials of the Huettel et al. (2006) experiment on choice under uncertainty with 30 Yale undergraduates, where subjects make 200 pair-wise choices between risky and ambiguous lotteries. Inferences about the independence of economic preferences for risk and ambiguity are...
Persistent link: https://www.econbiz.de/10014189074
We conduct two experiments where subjects make a sequence of binary choices between risky and ambiguous binary … analyze with the alternating logistic regression (ALR) package in SAS. In both experiments, we reveal to each subject the …
Persistent link: https://www.econbiz.de/10013084883
This paper is an exposition of an experiment on revealed preferences, where we posit a novel discrete binary choice model. To estimate this model, we use general estimating equations or GEE. This is a methodology originating in biostatistics for estimating regression models with correlated data....
Persistent link: https://www.econbiz.de/10013056705
The epistemic conditions of rationality and mth-order strong belief of rationality (RmSBR; Battigalli and Siniscalchi, 2002) formalize the idea that players engage in contextualized forward-induction reasoning. This paper characterizes the behavior consistent with RmSBR across all type...
Persistent link: https://www.econbiz.de/10013188995
Agents in a network want to learn the true state of the world from their own signals and their neighbors' reports. Agents know only their local networks, consisting of their neighbors and the links among them. Every agent is Bayesian with the (possibly misspecified) prior belief that her local...
Persistent link: https://www.econbiz.de/10012215328
same beliefs that we are trying to elicit? In this paper, we introduce mechanisms that make it simultaneously strictly … incentives provided by the mechanism itself, and (b) to report his beliefs truthfully. Such mechanisms are called robust scoring … sufficiently, we will approximate with arbitrary precision the beliefs that the subject would have held if he had not been …
Persistent link: https://www.econbiz.de/10013189019