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Proud to not own stocks : how identity shapes financial decisions

Henkel, Luca; Zimpelmann, Christian - 2022

experimental evidence that such perceptions of identity-relevant characteristics causally influence decisionmaking: if people view … administrative data, we show that negative perceptions strongly predict households' stock market participation, more so than leading … alternative determinants. Beyond investment decisions, perceptions predict individuals' polarizing behavior towards stockholders …

Persistent link: https://www.econbiz.de/10013468209

The effects of monetary policy : theory with measured expectations

Roth, Christopher; Wiederholt, Mirko; Wohlfart, Johannes - 2023

We study the effects of monetary policy on aggregate consumption combining a heterogeneous agent model with measured expectations under different policy counterfactuals. We express the consumption of non-hand-to-mouth households as a function of expectations only and elicit all expectations...

Persistent link: https://www.econbiz.de/10013493004

A note on salience of own preferences and the consensus effect

Dohmen, Thomas; Quercia, Simone; Willrodt, Jana - 2023

In this paper, we hypothesize that the strength of the consensus effect, i.e., the tendency for people to overweight the prevalence of their own values and preferences when forming beliefs about others' values and preferences, depends on the salience of own preferences. We manipulate salience by...

Persistent link: https://www.econbiz.de/10014233633

Contingent belief updating

Aina, Chiara; Amelio, Andrea; Brütt, Katharina - 2023

We study how contingent thinking - that is, reasoning through all possible contingencies without knowing which is realized - affects belief updating. According to the Bayesian benchmark, beliefs updated after exposure to new information should be equivalent to beliefs assessed for the...

Persistent link: https://www.econbiz.de/10014416232

Can information be too much? : information source selection and beliefs

Amelio, Andrea - 2023

investigates how the number of available information sources impacts agents' ability to (i) select reliable sources and (ii) use …

Persistent link: https://www.econbiz.de/10014416234

Attention to the macroeconomy

Link, Sebastian; Peichl, Andreas; Roth, Christopher; … - 2023

We provide evidence on the dynamics, drivers, and consequences of attention to the macroeconomy using tailored panel surveys of German firms and households. Draw-ing on novel measures of attention based on open-ended questions collected before and during a historic shock to inflation, we...

Persistent link: https://www.econbiz.de/10014382474

Mental models of the stock market

Andre, Peter; Schirmer, Philipp; Wohlfart, Johannes - 2023

Investors’ return expectations are pivotal in stock markets, but the reasoning behind these expectations remains a black box for economists. This paper sheds light on economic agents’ mental models – their subjective understanding – of the stock market, drawing on surveys with the US...

Persistent link: https://www.econbiz.de/10014382545

When product markets become collective traps : the case of social media

Bursztyn, Leonardo; Handel, Benjamin; Jiménez Durán, … - 2023

Individuals might experience negative utility from not consuming a popular product. For example, being inactive on social media can lead to social exclusion or not owning luxury brands can be associated with having a low social status. We show that, in the presence of such spillovers to...

Persistent link: https://www.econbiz.de/10014382550

Timing decisions under model uncertainty

Auster, Sarah; Kellner, Christian - 2023

We study the effect of ambiguity on timing decisions. An agent faces a stopping problem with an uncertain stopping payoff and a stochastic time limit. The agent is unsure about the correct model quantifying the uncertainty and seeks to maximize her payoff guarantee over a set of plausible...

Persistent link: https://www.econbiz.de/10014364260

Historical narratives about the COVID-19 pandemic are motivationally biased

Sprengholz, Philipp; Henkel, Luca; Böhm, Robert; … - 2023

strong motivations and anchoring perceptions on the current situation. Here, based on four studies across 11 countries (total …

Persistent link: https://www.econbiz.de/10014364275