Consumers acquire information through their own search efforts or through word-of-mouth communication within their social network. Information diffusion leads to free-riding and less active search. Free-riding…
The winner’s curse describes the behavioural phenomenon that the winner of a bidding contest pays a price that is too high. This paper shows that experiential learning cannot prevent a winner’s curse on the…
The usual analysis of bidding in first-price auctions assumes that bidders know the distribution of valuations. We analyze first-price auctions in which bidders do not know the precise distribution of…
After the 2021 flood events in Germany, the introduction of compulsory flood insurance is debated. However, insurance coverage for private buildings and belongings may undermine the willingness to pay for…
We show that in school systems with grade retention or redshirting birth cohort size is negatively related to the grade-level share of students who are too old for their grade. This compositional effect gives…