Essays in Applied Microeconomics

Essays in Applied Microeconomics

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Chapter 2 is co-authored with Andrew Schotter and is motivated by the literature on cognitive hierarchies. This literature tends to view subjects' cognitive types as determined before they come into the laboratory so that the distribution of types is exogenous and immutable across games. We view the choice of a person's cognitive level (here taken to be the number of steps of backward reasoning performed) as endogenous and explain it by focusing on subjects' expectations about the cognitive levels chosen by others. We run a set of experiments using the 2/3rd's guessing game where subjects receive advice offered by a set of advisors. We find that certain types of publicly announced advice---those that are commonly interpreted as meaningful---are capable of shifting the distribution of observed cognitive types indicating that the distribution is endogenous.The rest of the paper precedes as follows. ... These papers all present historical empirical evidence that supports the idea that differences in husbandsa#39; income levels are insufficient to explain the differences in labor supply choices betweenanbsp;...

Title:Essays in Applied Microeconomics
Author:Elizabeth Potamites
Publisher:ProQuest - 2007


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