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We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty noticing higher prices if they are 9-ending, or noticing price-increases if the new prices are 9-ending, because 9-endings are used as a signal for low prices. Price setters...
Persistent link: https://www.econbiz.de/10015262673
The focus of this study is on black markets which provide an important segment of the parallel economy. These markets operate in disequilibrium,search and information costs become very important.Trafficking in drugs taken as case, to explore both theoretically and empirically. The problem,...
Persistent link: https://www.econbiz.de/10015229963
Following Kreps (1979), we consider a decision maker with uncertain beliefs about her own future taste. This uncertainty leaves the decision maker with preference for flexibility: When choosing among menus containing alternatives for future choice, she weakly prefers larger menus. Existing...
Persistent link: https://www.econbiz.de/10015259976
To select one of several products (or to buy nothing) is a daily decision. Its foundations vary from one person to another and are based on perceptions, preferences, and other criteria. The standard theoretical perspective conveys that people choose options with the highest net benefit. However,...
Persistent link: https://www.econbiz.de/10015227830
In soccer penalty kicks, goalkeepers choose their action before they can clearly observe the kick direction. An analysis of 286 penalty kicks in top leagues and championships worldwide shows that given the probability distribution of kick direction, the optimal strategy for goalkeepers is to...
Persistent link: https://www.econbiz.de/10015236034
We examine the feasibility of using a massively multiplayer online role-playing game (MMORPG) to test economic theories. As a test vehicle we use the well-known hypothesis about the relationship between market experience and the endowment effect. Our results confirm earlier field experiments...
Persistent link: https://www.econbiz.de/10015261962
We investigate the behavioural responses of natural common-pool resource users to three policy interventions—sanctioned quotas, information provisioning, and a combination of both. We focus on situations in which users find utility in multiple resources (pastures and wild animal stocks) that...
Persistent link: https://www.econbiz.de/10015269723
By randomising the order in which new economics research papers are presented in email alerts and tracking economists’ subsequent download activity, this paper uses a natural field experiment to better understand the reasons why individuals show a disproportionate tendency to select items...
Persistent link: https://www.econbiz.de/10015237673
A possibility of the existence of a discontinuity of Prelec’s (probability weighting) function at the probability p = 1 is discussed. This possibility is supported by the purely mathematical theorems and the “certain–uncertain” inconsistency of the random–lottery incentive experiments....
Persistent link: https://www.econbiz.de/10015247773
This study sheds new light on the question of whether or not sentiment surveys, and the expectations derived from them, are relevant to forecasting economic growth and stock returns, and whether they contain information that is orthogonal to macroeconomic and financial data. I examine 16...
Persistent link: https://www.econbiz.de/10015230542