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Showing 21-40 of 57 items.

Anomalies: Closed-End Mutual Funds

By Charles M. C. Lee, Andrei Shleifer, and Richard H. Thaler

Journal of Economic Perspectives, Fall 1990

The pricing of closed-end funds presents several puzzles. The following are the four sets of facts that any theory of closed-end fund pricing must address. 1) New funds appear on the market at a premium and move rapidly to a discount. 2) Closed-end funds ...

Anomalies: The Ultimatum Game

By Richard H. Thaler

Journal of Economic Perspectives, Fall 1988

This paper discusses simple ultimatum games, two-stage bargaining ultimatum games, and multistage ultimatum games. Finally, I discuss ultimatums in the market. Any time a monopolist (or monopsonist) sets a price (or wage), it has the quality of an ultimat...

Unemployment in an Interdependent World

By Gabriel J. Felbermayr, Mario Larch, and Wolfgang Lechthaler

American Economic Journal: Economic Policy, February 2013

How do changes in labor market institutions, like more generous unemployment benefits in one country, affect labor market outcomes in other countries? We set up a two-country Armingtonian trade model with frictions on the goods and labor markets. Contr...

Anomalies: The January Effect

By Richard H. Thaler

Journal of Economic Perspectives, Summer 1987

This feature will report successful searches for disconfirming evidence -- economic anomalies. As suggested by Thomas Kuhn, an economic anomaly is a result inconsistent with the present economics paradigm. Economics is distinguished from other social scie...

Anomalies: Foreign Exchange

By Kenneth A. Froot and Richard H. Thaler

Journal of Economic Perspectives, Summer 1990

In what follows, we discuss the efficiency of foreign exchange markets. To manage what would otherwise be an enormous task, the question of efficiency is viewed below from the perspective of a single type of test: the test for what is called the forward d...

From Homo Economicus to Homo Sapiens

[Symposium: Forecasts for the Future of Economics]

By Richard H. Thaler

Journal of Economic Perspectives, Winter 2000

In responding to a request for predictions about the future of economics, I predict that Homo Economicus will evolve into Homo Sapiens, or, more simply put, economics will become more related to human behavior. My specific predictions are that Homo Econom...

Anomalies: The Equity Premium Puzzle

By Jeremy J. Siegel and Richard H. Thaler

Journal of Economic Perspectives, Winter 1997

The equity premium is the difference in returns between equities and fixed income securities, such as Treasury bills. The puzzle refers to the fact that the premium has historically been very large--about 6 percent per year--too large to be easily explain...

The Flypaper Effect

By James R. Hines and Richard H. Thaler

Journal of Economic Perspectives, Fall 1995

What happens to a state's spending when it receives an unconditional grant from the federal government? The standard theoretical analysis predicts that the increase in spending will be the same as that generated by an equivalent increase in local incomes-...

Standing United or Falling Divided? High Stakes Bargaining in a TV Game Show

By Dennie van Dolder, Martijn J. van den Assem, Colin F. Camerer, and Richard H. Thaler

American Economic Review, May 2015

We examine high stakes three-person bargaining in a game show where contestants bargain over a large money amount that is split into three unequal shares. We find that individual behavior and outcomes are strongly influenced by equity concerns: those who ...

Anomalies: Cooperation

By Robyn M. Dawes and Richard H. Thaler

Journal of Economic Perspectives, Summer 1988

Much economic analysis -- and virtually all game theory -- starts with the assumption that people are both rational and selfish. The predictions derived from this assumption of rational selfishness are, however, violated in many familiar contexts. In this...

Anomalies: Risk Aversion

By Matthew Rabin and Richard H. Thaler

Journal of Economic Perspectives, Winter 2001

Economists ubiquitously employ a simple and elegant explanation for risk aversion: It derives from the concavity of the utility-of-wealth function within the expected-utility framework. We show that this explanation is not plausible in most applications, ...

Anomalies: Intertemporal Choice

By George Loewenstein and Richard H. Thaler

Journal of Economic Perspectives, Fall 1989

We examine a number of situations in which people do not appear to discount money flows at the market rate of interest or any other single discount rate. Discount rates observed in both laboratory and field decision-making environments are shown to depend...