Similar Search Results

Saint-Paul, Gilles - 2002

This paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. People compute the costs and benefits of entering a transaction with an error. The government knows the distribution of true costs and benefits as well...

Persistent link: https://www.econbiz.de/10010262616

Cognitive Ability and Paternalism

Saint-Paul, Gilles - Institute for the Study of Labor (IZA) - 2002

Persistent link: https://www.econbiz.de/10005761789

An Economic Analysis of Exclusion Restrictions for Instrumental Variable Estimation

Berg, Gerard J. van den - Institute for the Study of Labor (IZA) - 2007

Instrumental variable estimation requires untestable exclusion restrictions. With policy effects on individual outcomes, there is typically a time interval between the moment the agent realizes that he may be exposed to the policy and the actual exposure or the announcement of the actual...

Persistent link: https://www.econbiz.de/10005763520

Testing the Reference-Dependent Model: A Laboratory Search Experiment

Miura, Takahiro; Inukai, Keigo; Sasaki, Masaru - 2019

Our paper conducts laboratory experiments with the sequential search model to test whether participants engage in search activities in line with theoretical predictions derived from the expected utility model or the reference-dependent model, without assuming any specific formulation rule for a...

Persistent link: https://www.econbiz.de/10012059108

Media and Occupational Choice

Konon, Alexander; Kritikos, Alexander S. - 2017

We address the question of whether media influences occupational choices. To theoretically examine media effects, we construct a dynamic Bayesian occupational choice model with sequential decisions under ambiguity due to imperfect information. We show that sufficiently intensive positive media...

Persistent link: https://www.econbiz.de/10011744727

Rational Inattention and Migration Decisions

Bertoli, Simone; Fernández-Huertas Moraga, Jesús; … - 2020

Acquiring information about destinations can be costly for migrants. We model information frictions in the rational inattention framework and obtain a closed-form expression for a migration gravity equation that we bring to the data. The model predicts that ows from countries with a higher cost...

Persistent link: https://www.econbiz.de/10012207764

Navigating Ambiguity: Imprecise Probabilities and the Updating of Disease Risk Beliefs

Kerwin, Jason; Pandey, Divya - 2023

Probabilistic risk beliefs are key drivers of economic and health decisions, but people are not always certain about their beliefs. We study these "imprecise probabilities", also known as ambiguous beliefs. We show that imprecision is measurable separately from the levels of risk beliefs. People...

Persistent link: https://www.econbiz.de/10014469382

Anchoring in Financial Decision-Making: Evidence from the Field

Jetter, Michael; Walker, Jay K. - 2016

anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue … in their wagering decision, even though there exists no rational reason to do so. More than half of all wagers occur … manifests itself among college students. Overall, our findings suggest anchoring plays a substantial role in financial decision …

Persistent link: https://www.econbiz.de/10011559579

Consumer Search Costs and Preferences on the Internet

Jolivet, Grégory; Turon, Hélène - 2014

We analyse consumers' search and purchase decisions on an Internet platform. Using a rich dataset on all adverts posted and transactions made on a major French Internet platform (PriceMinister), we show evidence of substantial price dispersion among adverts for the same product. We also show...

Persistent link: https://www.econbiz.de/10010468167

True Overconfidence, Revealed through Actions: An Experiment

Cheung, Stephen L.; Johnstone, Lachlan - 2017

We report an experiment that infers true overconfidence in relative ability through actions, as opposed to reported beliefs. Subjects choose how to invest earnings from a skill task when the returns depend solely upon risk, or both risk and relative placement, enabling joint estimation of...

Persistent link: https://www.econbiz.de/10011653273