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Heufer, Jan; van Bruggen, Paul - 2016

Varian (1988) showed that the utility maximization hypothesis cannot be falsified when only a subset of goods is observed. We show that this result does not hold under the assumptions that unobserved prices and expenditures remain constant. These assumptions are naturally satisfied in laboratory...

Persistent link: https://www.econbiz.de/10011586710

Homothetic Preferences Revealed

Heufer, Jan; Hjertstrand, Per - 2017

We propose a method to recover homothetic preferences from choice data with minor optimization or measurement errors. Our method allows for a more detailed graphical analysis to reveal subjects' preferences and to choose appropriate functional forms for parametric analysis. It can also be used...

Persistent link: https://www.econbiz.de/10011819496

Measuring tastes for equity and aggregate wealth behind the veil of ignorance

Heufer, Jan; Shachat, Jason M.; Xu, Yan - 2018

We propose an instrument to measure individuals' social preferences regarding equity and efficiency behind a veil of ignorance. We pair portfolio and wealth distribution choice problems which have a common budget set. For a given bundle, the distribution over an individual's wealth is the same...

Persistent link: https://www.econbiz.de/10011932358

Homothetic Efficiency and Test Power: A Non-Parametric Approach

Heufer, Jan; Hjertstrand, Per - 2015

We provide a nonparametric revealed preference approach to demand analysis based on homothetic efficiency. Homotheticity is a useful restriction but data rarely satisfies testable conditions. To overcome this we provide a way to estimate homothetic efficiency of consumption choices. It...

Persistent link: https://www.econbiz.de/10011288415

R&D Networks

Goyal, Sanjeev; Moraga, Jose Luis - 2000

We develop a model of strategic networks that captures two distinctive features of interfirm collaboration: bilateral … to invest in R&D, and the architecture of collaboration networks. In the absence of firm rivalry, the complete network …, under strong market rivalry the complete network is stable, but intermediate levels of collaboration and asymmetric networks …

Persistent link: https://www.econbiz.de/10010324725

Coordination of Expectations in Asset Pricing Experiments

Hommes, Cars; Sonnemans, Joep; Tuinstra, Jan; van de … - 2003

We investigate expectation formation in a controlled experimental en-vironment. Subjects are asked to predict the price in a standard asset pricingmodel. They do not have knowledge of the underlying market equilibrium equa-tions, but they know all past realized prices and their own predictions....

Persistent link: https://www.econbiz.de/10010324831

How Universal is Behavior?

Brandts, Jordi; Saijo, Tatsuyoshi; Schram, Arthur - 2002

This paper studies behavior in experiments with a linear voluntary contributions mechanism for public goods conducted in Japan, the Netherlands, Spain and the USA. The same experimental design was used in the four countries. Our 'contribution function' design allows us to obtain a view of...

Persistent link: https://www.econbiz.de/10010325039

Gift Exchange and the Separation of Ownership and Control

Maximiano, Sandra; Sloof, Randolph; Sonnemans, Joep - 2006

Numerous gift exchange experiments have found a positive relationship between employers' wage offers and workers' effort levels. In (almost) all these experiments the employer both owns and controls the firm. Yet in reality many firms are characterized by the separation of ownership and control....

Persistent link: https://www.econbiz.de/10010325515

Understanding Contract Audits: An Experimental Approach

Bertrand, Robert M.M.; Schram, Arthur J.H.C.; Vaassen, … - 2011

Contract audits aimed at reducing information asymmetry and transaction costs are frequently used in imperfect markets such as defense procurement. This contradicts predictions from standard economic theory. We conduct a laboratory experiment to investigate this paradox. Our laboratory setup...

Persistent link: https://www.econbiz.de/10010325823

Separating Real Incentives and Accountability

Vieider, Ferdinand M. - 2008

In experimental investigations of the effect of real incentives, accountability—the implicit or explicit expectation of a decision maker that she may have to justify her decisions in front of somebody else—is often confounded with the incentives themselves. This confounding of accountability...

Persistent link: https://www.econbiz.de/10010326033