Essays in Applied Behavioral Microeconomics
Author | : Giovanni Paci |
Publisher | : |
Total Pages | : |
Release | : 2014 |
ISBN-10 | : OCLC:952457343 |
ISBN-13 | : |
Rating | : 4/5 (43 Downloads) |
Book excerpt: The estimates can be effectively reconciled by models of reference-dependent preferences that take drivers' expectation as reference points: drivers are more likely to cheat on those rides within a shift in which they are below expectations. The results highlight the role played by a classic decision-making bias in shaping unethical behavior in a market. These findings suggests that cognitive and emotional aspects of the valuation of benefits are relevant to our economic understanding of ethical problems. The third chapter presents regression-discontinuity evidence on an investment-incentive program. The methodology, which compares firms who received the award with those that marginally lost it, allows for a cleaner identification of the effect of the policy. In this last essay, the conceptual tools from Applied Microeconomics used in the first chapter are put to work in the context of firms' behavior. The tool allows one to show in a straightforward manner the main outcomes of the policy.