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We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011557745
Evidence suggests that participants in direct student-proposing deferred-acceptance mechanisms (DA) play dominated strategies. To explain the data, we introduce expectation-based loss aversion into a school-choice setting and characterize choice-acclimating personal equilibria in DA. We find...
Persistent link: https://www.econbiz.de/10012698801
Extensive evidence suggests that participants in the direct student-proposing deferred-acceptance mechanism (DSPDA) play dominated strategies. In particular, students with low priority tend to misrepresent their preferences for popular schools. To explain the observed data, we introduce...
Persistent link: https://www.econbiz.de/10012138798
Agents with reciprocal preferences prefer to be matched to a partner who also likes to collaborate with them. In this paper, we introduce and formalize reciprocal preferences, apply them to matching markets, and analyze the implications for mechanism design. Formally, the preferences of an agent...
Persistent link: https://www.econbiz.de/10014478421
candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …
Persistent link: https://www.econbiz.de/10009012621
candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …. -- Reference Points ; Expectations ; Loss Aversion ; Risk Aversion ; Disappointment ; Experiment …
Persistent link: https://www.econbiz.de/10003799801
candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …. -- Reference points ; expectations ; loss aversion ; risk aversion ; disappointment ; experiment …
Persistent link: https://www.econbiz.de/10003794106
treatment effects over gain-loss types in both an initial experiment and an exact replication. Recognizing heterogeneity over …
Persistent link: https://www.econbiz.de/10012835407
candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …
Persistent link: https://www.econbiz.de/10012765260
We study the problem of elicitation of subjective beliefs of an agent when the beliefs are ambiguous (the set of beliefs is a non-singleton set) and the agent's preference exhibits ambiguity aversion; in particular, as represented by alpha-maxmin preferences. We construct a direct revelation...
Persistent link: https://www.econbiz.de/10012969749