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Persistent link: https://www.econbiz.de/10010866215
It is shown that for two dimensional commodity spaces any homothetic utility function that rationalizes each pair of observations in a set of consumption data also rationalizes the entire set. The result is used to provide a simplified nonparametric test for homotheticity of demand and a measure...
Persistent link: https://www.econbiz.de/10010866223
Laboratory experiments are frequently used to examine the nature of individuals’ social and risk preferences and inform economic theory. However, it is unknown whether the preferences of volunteer participants are representative of the population from which the participants are drawn, or...
Persistent link: https://www.econbiz.de/10010988980
This study considers a model of road congestion with average cost pricing. Subjects must choose between two routes—Road and Metro. The travel cost on the road is increasing in the number of commuters who choose this route, while the travel cost on the metro is decreasing in the number of its...
Persistent link: https://www.econbiz.de/10010988986
We investigate contract negotiations in the presence of externalities and asymmetric information in a controlled laboratory experiment. In our setup, it is commonly known that it is always ex post efficient for player A to implement a project that has a positive external effect on player B ....
Persistent link: https://www.econbiz.de/10015179588
Persistent link: https://www.econbiz.de/10005068098
Agency theory has established that appropriate incentives can reconcile the diverging interests of the principal and the agent. Focusing on three applications, this dissertation evaluates the empirical relevance of these results when a third party interacts with the primary contract. The...
Persistent link: https://www.econbiz.de/10005711643
Prior archival studies of analysts' forecasts have found evidence for systematic underreaction, systematic overreaction, and systematic optimism bias. Easterwood and Nutt (1999) attempt to reconcile the conflicting evidence by testing the robustness of Abarbanell and Bernard's (1992)...
Persistent link: https://www.econbiz.de/10005711738
We describe a common pool resource game in which players choose how much of the stock to extract in a sequential manner. There are two choices and one represents taking a larger proportion of the stock than the other. After a player makes a choice, the remaining stock grows at a constant rate....
Persistent link: https://www.econbiz.de/10005711745
We provide a simplified test to determine if choice data from a two-commodity consumption set satisfies the Generalized Axiom of Revealed Preference (GARP), and thus the preference or utility maximization hypothesis. We construct an algorithm for this test and illustrate its application on...
Persistent link: https://www.econbiz.de/10005256670