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Hafalir, Isa E./Hakimov, Rustamdjan/Kübler, Dorothea/Kurino, Morimitsu (2014): College Admissions with Entrance Exams: Centralized versus Decentralized. DiscussionPaper SP II 2014-208. Berlin: WZB.
Market participants not only concerned with their direct monetary benefit from interactions. We show how image concerns affect consumer choices and tax morale, how personal privacy can be protected, trust created and corruption reduced.
Systematic mistakes in judgements affect economic decisions in many contexts. Over- and underconfidence can affect decisions by job searchers to accept job offers. The endowment effect hinders efficient trading. Finally, people tend to exaggerate the availability of their own information for others or their own past selves (hindsight bias).