Quarterly Journal of Economics articles from February 2001

Quarterly Journal of Economics archives from February 2001

PROSPECT THEORY AND ASSET PRICES [*].
February 1, 2001... We study asset prices in an economy where investors derive direct utility not only from consumption but also from fluctuations in the value of their financial wealth. They are loss averse over these fluctuations, and the degree of loss aversion...

PSYCHOLOGICAL EXPECTED UTILITY THEORY AND ANTICIPATORY FEELINGS [*].
February 1, 2001... We extend expected utility theory to situations in which agents experience feelings of anticipation prior to the resolution of uncertainty. We show how these anticipatory feelings may result in time inconsistency. We provide an example from...

A CUE-THEORY OF CONSUMPTION [*].
February 1, 2001... Psychological experiments demonstrate that repeated pairings of a cue and a consumption good eventually create cue-based complementarities: the presence of the cue raises the marginal utility derived from consumption. In this paper, such...

CHOICE AND PROCRASTINATIOIN [*].(Statistical Data Included)
February 1, 2001... Recent models of procrastination due to self-control problems assume that a procrastinator considers just one option and is unaware of her self-control problems. We develop a model where a person chooses from a menu of options and is partially...

STATUS IN MARKETS [*].(Statistical Data Included)
February 1, 2001... This project tests for the effect of social status in a laboratory experimental market. We consider a special "box design" market in which a vertical overlap in supply and demand ensure that there are multiple equilibrium prices. We manipulate...

A SIMPLE MODEL OF VOICE.(Statistical Data Included)
February 1, 2001... We think of voice as a means of information aggregation within groups operating in a variety of settings. We explore how the characteristics of groups and their leaders influence voice. In relatively homogeneous groups, members farthest away...

INSTITUTIONAL INVESTORS AND EQUITY PRICES [*].(Statistical Data Included)
February 1, 2001... This paper analyzes institutional investors' demand for stock characteristics and the implications of this demand for stock prices and returns. We find that "large" institutional investors nearly doubled their share of the stock market from...

BOYS WILL BE BOYS: GENDER, OVERCONFIDENCE, AND COMMON STOCK INVESTMENT [*].(Statistical Data Included)
February 1, 2001... Theoretical models predict that overconfident investors trade excessively. We test this prediction by partitioning investors on gender. Psychological research demonstrates that, in areas such as finance, men are more overconfident than women....

WHICH IS THE FAIR SEX? GENT)ER DIFFERENCES IN ALTRUISM [*].(Statistical Data Included)
February 1, 2001... We study gender differences in altruism by examining a modified dictator game with varying incomes and prices. Our results indicate that the question "which is the fair sex?" has a complicated answer--when altruism is expensive, women are...

EMPLOYER LEARNING AND STATISTICAL DISCRIMINATION [*].(Statistical Data Included)
February 1, 2001... We show that if firms statistically discriminate among young workers on the basis of easily observable characteristics such as education, then as firms learn about productivity, the coefficients on the easily observed variables should fall, and...

DISCRIMINATION IN A SEGMENTED SOCIETY: AN EXPERIMENTAL APPROACH [*].(Statistical Data Included)
February 1, 2001... This paper proposes an experimental approach to studying different aspects of discrimination. We let participants play various games with opponents of distinct ethnic affiliation. Strategies based upon such ethnic affiliation provide direct...