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Haghtalab, Nika; Immorlica, Nicole; Lucier, Brendan; … - 2022

We study a model of social learning and communication using hard anecdotal evidence. There are two Bayesian agents (a sender and a receiver) who wish to communicate. The receiver must take an action whose payoff depends on their personal preferences and an unknown state of the world. The sender...

Persistent link: https://www.econbiz.de/10014243362

Gun for Hire : Does Delegated Enforcement Crowd Out Peer Punishment in Giving to Public Goods?

Andreoni, James - 2011

This paper compares two methods to encourage socially optimal provision of a public good. We compare the efficacy of vigilante justice, as represented by peer-to-peer punishment, to delegated policing, as represented by the "hired gun" mechanism, to deter free riding and improve group welfare....

Persistent link: https://www.econbiz.de/10013125564

Volatile Policy and Private Information : the Case of Monetary Policy

Jones, Larry; Manuelli, Rody - 2021

In this paper we study how volatility in monetary policy affects economic performance in the presence of endogenously chosen information structures. To isolate the effects produced by the interaction of uncertainty in monetary policy and (possibly) asymmetric information, we consider a model in...

Persistent link: https://www.econbiz.de/10013230773

Subgame Perfect Implementation with Almost Perfect Information and the Hold-Up Problem

Aghion, Philippe - 2009

The foundations of incomplete contracts have been questioned using or extending the subgame perfect implementation approach of Moore and Repullo (1988). We consider the robustness of subgame perfect implementation to the introduction of small amounts of asymmetric information. We show that...

Persistent link: https://www.econbiz.de/10013157916

Tax Competition and Migration : The Race-to-The-Bottom Hypothesis Revisited

Razin, Assaf - 2011

Oates reminds us that tax competition among localities in the presence of capital mobility, may lead to inefficiently low tax rates (and benefits). In contrast, the Tiebout paradigm suggests that tax competition yields an efficient outcome, so that there are no gains from tax coordination. This...

Persistent link: https://www.econbiz.de/10013131671

Expectation, Disappointment, and Exit : Reference Point Formation in a Marketplace

Backus, Matthew - 2017

We study expectation-based reference point formation using data from an online auction marketplace. We hypothesize that exit from the marketplace is affected by disappointment from abruptly losing an auction after being the leading bidder. Expectation-based reference points that evolve over time...

Persistent link: https://www.econbiz.de/10012965953

Prospect Theory and Energy Efficiency

Heutel, Garth - 2017

behave according to prospect theory: preferences are reference-dependent and exhibit loss aversion, and probabilities are … subjectively weighted. Using data from a choice experiment eliciting prospect theory parameters, I provide evidence that loss …-averse people are less likely to invest in energy efficiency. Then, I consider policy design under prospect theory when there are …

Persistent link: https://www.econbiz.de/10012949426

Psychology-Based Models of Asset Prices and Trading Volume

Barberis, Nicholas - 2018

overconfident beliefs, and models of gain-loss utility inspired by prospect theory. The research to date shows that a few simple …

Persistent link: https://www.econbiz.de/10012916604

Climatic Roots of Loss Aversion

Galor, Oded - 2018

consistent with the predictions of the theory, individuals and ethnic groups that are originated in regions marked by greater …

Persistent link: https://www.econbiz.de/10012907746

Revealed Preference Analysis with Framing Effects

Goldin, Jacob - 2018

In many settings, decision-makers' behavior is observed to vary based on seemingly arbitrary factors. Such framing effects cast doubt on the welfare conclusions drawn from revealed preference analysis. We relax the assumptions underlying that approach to accommodate settings in which framing...

Persistent link: https://www.econbiz.de/10012909856