When self-interested agents compete for scarce resources, they often exaggerate the promise of their activities. As such, principals must consider both the quality of each opportunity and each agent's credibility. We show that principals are better off with less transparency because they gain...

This paper examines the effects of expenditure-based fiscal consolidation when credibility as to whether the cuts will be long-lasting is imperfect. We contrast the impact limited credibility has when the consolidating country has the means to tailor monetary policy to its own needs, with the...

Good policy requires reliable scientific knowledge, but there are many obstacles. Most econometric estimates lack adequate statistical power; some estimates cannot be replicated; publication selection bias (the selective reporting of results) is common; and there is wide variation in the evidence...

Recent developments in impact evaluation recognise the need to go beyond the intense debate over experimental techniques to incorporate theory-based approaches and qualitative research methods. Motivated by an underlying concern that qualitative research in this new wave of qualitative impact...

Wenn Mitarbeiter nicht aufrichtig sind oder Kunden das Vertrauen verlieren, geraten Unternehmen schnell in eine Krise. Dabei zeigen Experimente: Schon die Erinnerung an christliche oder moralische Werte macht Menschen ehrlicher und vertrauensvoller. Das können Unternehmen für sich nutzen.

Background - Due to the rapid growth of the Internet and use of e-commerce in recent years, viral marketing has drawn the attention of manufacturing and service organizations. However, no research has been conducted to examine the impact of message appeal and message source credibility on...

The present paper takes ground on an agent-based model presented in Arfaoui et al. (2014) to investigate the effects of credibility upon technology substitution such as stimulated by the REACH regulation (EC 1907/2006). The model is used to study how the perceived credibility by clients on the...

The sheer existence of EUR/CHF put options with strike prices below the EUR/CHF 1.20 floor, trading at non-zero cost, challenged the full credibility of the Swiss National Bank (SNB) in enforcing the lower barrier implemented in September 6, 2011 and abandoned on January 15, 2015. We estimate...

From an economic perspective, imposing a credible one-off net wealth levy in crisis times as a tool to ward off a national emergency appears to be advantageous as, in an ideal world, this would not distort market players’ allocation decisions. However, in practice, charging such a levy may...

The paper analyzes the role of the structure of communication - i.e. who is talking with whom - on the choice of messages, on their credibility and on actual play. We run an experiment in a three-player coordination game with Pareto ranked equilibria, where a pair of agents has a profitable...

Inflation targeting has been adopted in a set of emerging economies, including eight countries in Latin America. The success of this regime may depend critically on the credibility of the target and the expectation that the authorities will take appropriate actions if the target is breached....