We estimate a DSGE model with Preferences Over Safe Assets (POSA) on Euro Area macroeconomic data and interest rate expectations measures. The model with POSA has much better empirical fit than the otherwise identical model without, especially once interest rate expectations are added to the...

We study an experiment of the students-proposing deferred acceptance mechanism (DA) in matching markets where firms are matched with students. We investigated the two different situations: (i) Students know firms' preferences and firms submit their true preference, (ii) Students know firms'...

Inspired by empirical evidence from the oil market, we build a model of an oligopoly facing a fringe as well as competition from renewable resources. We explore different subclasses of HARA utility functions (Cobb-Douglas, power and quadratic utility) to check the robustness of results found in...

Using new data from a three-wave panel survey administered in Germany between May 2020 and May 2021, this paper studies the impact of a negative shock affecting every strata of the population, such as the development of COVID-19, on preferences for redistribution. Exploiting the plausibly...

We estimate the effect of parental separation on the risk and trust attitudes of German adolescents using a large household survey dataset, which allows us to match respondents to their siblings and parents. Our results indicate that adolescents from separated families are less trusting but have...

We provide new evidence on the extent that survey items in the Preference Survey Module and the resulting Global Preference Survey measuring social preferences - trust, altruism, positive and negative reciprocity - predict behavior in corresponding experimental games outside the original student...

We consider the economy consisting of n agents and m heterogenous objects where the seller benefits v from objects. Our study focuses on the multi-object allocation problem with monetary transfers where each agent obtains at most one object (unit-demand). In the situation with arbitrary n, m and...

We consider the problem of allocating multiple units of an indivisible object among a set of agents and collecting payments. Each agent can receive multiple units of the object, and has a (possibly) non-quasi-linear preference on the set of (consumption) bundles. We assume that preferences...

The class of double-crossing preferences, where signaling is cheaper for higher types than for lower types at low signaling levels and the opposite is true at high signaling levels, underlines the phenomenon of countersignaling. We show that under the D1 refinement, the equilibrium signaling...

Increasing inequality and associated egalitarian sentiments have again put redistribution on the political agenda. Other-regarding preferences may also affect support for redistribution, but knowledge about their distribution in the broader population and how they are associated with political...

Influential economic approaches as random utility models assume a monotonic relation between choice frequencies and "strength of preference," in line with widespread evidence from the cognitive sciences, which also document an inverse relation to response times. However, for economic decisions...

We estimate the effect of parental separation on the risk and trust attitudes of German adolescents using a large household survey dataset, which allows us to match respondents to their siblings and parents. Our results indicate that adolescents from separated families are less trusting but have...

Increasing inequality and associated egalitarian sentiments have again put redistribution on the political agenda. Other-regarding preferences may also affect support for redistribution, but knowledge about their distribution in the broader population and how they are associated with political...

In a model inspired by neuroscience, we show that constrained optimal perception encodes lottery rewards using an S-shaped encoding function and over-samples low-probability events. The implications of this perception strategy for behavior depend on the decision-maker’s understanding of the...

Based on representative data for 1614 citizens in Germany, this paper empirically examines the relationship between different types of environmental protection activities and subjective well-being (SWB) in terms of life satisfaction by specifically considering the role of economic preferences...

Economists have neglected place attachment as a potential explanation for people's preferences for environmental goods. We conducted the first discrete choice experiment to assess the place attachment concept in the valuation of and response to the place-specific environmental impact from a...

Considering that the assumption of time consistency does not adequately reveal the mechanisms of exit decisions of venture capital (VC), this study proposes two kinds of time-inconsistent preferences (i.e., time-flow inconsistency and time-point inconsistency) to advance research in this field....

Are preferences for reforms driven by individuals' own endowments or beliefs? To address this question, we conducted a cross-country survey on people's opinions on employment protection legislation-an area where reform has proven to be difficult and personal interests are at stake. We find that...

Individuals invest in ESG-assets not only because of higher expected returns but also for ethical and social considerations. Controversies surrounding the ESG footprint of crypto-assets - mainly on grounds of the energy-intensive crypto mining and their use for illegal activities - offer an...

Individuals invest in Environmental-Social-Governance (ESG)-assets not only because of (higher) expected returns but also driven by ethical and social considerations. Less is known about ESG-conscious investor subjective beliefs about crypto-assets and how these compare to traditional assets....

Condorcet domains are sets of preference orders such that the majority relation corresponding to any profile of preferences from the domain is acyclic. The best known examples in economics are the single-peaked, the single-crossing, and the group separable domains. We survey the latest...

Condorcet domains are sets of preference orders such that the majority relation corresponding to any profile of preferences from the domain is acyclic. The best known examples in economics are the single-peaked, the single-crossing, and the group separable domains. We survey the latest...

We characterize optimal consumption policies in a recursive intertemporal utility framework with local substitution. We establish existence and uniqueness and a version of the Kuhn-Tucker theorem characterizing the optimal consumption plan. An explicit solution is provided for the case when the...

This paper presents an incentivized experiment analyzing the role of demographic characteristics in individual decision-making under uncertainty. Reactions to a natural source of uncertainty, payoffs in a TV game show, were measured using Fuzzy-set Qualitative Comparative Analysis (fsQCA),...

What are the preferred policy responses of host country residents to large migration inflows, and to what extent are these preferences driven by contact with migrants as well as values such as humanitarianism This paper addresses these questions using new data on preferences of Colombians for...

Anti-immigrant sentiment is frequently motivated by the idea that migrants are a threat to the host country's culture (Rapoport et al., 2020). We contribute to the discussion by investigating whether migrants adapt their social preferences (SPs) to those prevalent in their host country. For...

We study an experiment of the students-proposing deferred acceptance mechanism (DA) in matching markets where firms are matched with students. We investigated the two different situations: (i) Students know firms' preferences and firms submit their true preference, (ii) Students know firms'...

We investigate experimentally whether players deliberately use irrelevant market cues to shape their evaluations of a traded item. We implement a repeated Vickrey median price selling auction of an unusual bad where players are informed on the market price and on the three lowest or highest...

In this study, we enrich a standard principal-agent model with hidden action by introducing salience-biased perception on the agent's side. The agent's misguided focus on salient payoffs, which leads the agent's and the principal's probability assessments to diverge, has two effects: First, the...

Soils provide multiple benefits for human well-being, which are largely invisible to most beneficiaries. Here, we present the results of a discrete choice experiment into the preferences of Germans for soil-based ecosystem services. To tackle complexity and unfamiliarity of soils, we express...