infonet-economy

This paper presents models for search behavior and provides experimental evidence that behavioral heterogeneity in search is linked to heterogeneity in individual preferences. Observed search behavior is more consistent with a new model that assumes dynamic updating of utility reference points than with models that are based on expected-utility maximization. Specifically, reference...

In this paper, we argue that important labor market phenomena can be better understood if one takes (a) the inherent incompleteness and relational nature of most employment contracts and (b) the existence of reference-dependent fairness concerns among a substantial share of the population into account. Theory shows and experiments confirm that, even if fairness concerns were to exert...

This paper describes subjective wage inequality and the demand for redistribution in Austrianusing individuals' estimates of occupational wages from the International Social SurveynProgram. Although these estimates differ widely across individuals, the data clearly show that most individuals would like to decrease wage inequality, relative to the level of inequality which they...

This note presents an algorithm that extends a binary choice model to choice among multiple alternatives. Both neoclassical microeconomic theory and Luce choice model are consistent with the proposed algorithm. The algorithm is compatible withnseveral empirical findings (asymmetric dominance and attraction effects) that cannot be explained within standard models.

Multi-unit ascending auctions allow for equilibria in which bidders strategically reduce their demand and split the market at low prices. At the same time, they allow for preemptive bidding by incumbent bidders in a coordinated attempt to exclude entrants fromnthe market. We consider an environment where both demand reduction and preemptivenbidding are supported as equilibrium...

Selten and Chmura (American Economic Review, June 2008, 98(3), 938-966) recently reported experimental laboratory results for 2 x 2 games with unique mixed-strategy equilibria used to compare Nash equilibrium with four other stationary concepts: quantal response equilibrium, action-sampling equilibrium, payoff-sampling equilibrium, and impulse balance equilibrium. They conclude that...

This paper reports results from social learning experiments where subjects choose between two options and each subject has a small chance of being perfectly informed about which option is correct. In treatment 'sequence', subjects observe the entire sequence of predecessors' choices while in treatment 'no-sequence' they only observe the number of times each...

We study the long-run relation between money, measured by inflation or interest rates, and unemployment. We first document in the data a positive relation between these variables at low frequencies. We then develop a framework where unemployment and money are both modeled using microfoundations based on search and bargaining theory, providing a unified theory for analyzing labor and...

Digital video recorder proliferation and new commercial audience metrics are making television networks’ revenues more sensitive to audience losses from advertising. There is currently limited understanding of how traditional advertising and product placement affectntelevision audiences. We estimate a random coefficients logit model of viewing demand for television programs, wherein...