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Regional price levels in Germany
Cross-sectional evidence on price levels is scarce for all countries. However, several studies suggest that there might exist considerable differences in price levels within countries, which hasExpand
How important is geography for agglomeration
The economic geography literature distinguishes between two types of reasons for economic agglomeration. Regional concentration of economic activity can be attributed to 'first nature' meaningExpand
Willingness to consume and ability to consume
George Katona (1960) introduced the distinction between ability to buy and willingness to buy. Ability to buy refers to the objective factors determining actual purchases whereas willingness to buyExpand
Earnings Disparities in Unified Germany: Nominal versus Real
AbstractData on nominal earnings are widely used both in policy discussions and in economic research. However, for welfare comparisons and tests of economic theories, real – i.e. price levelExpand
Unstructured Bargaining Over an Endogenously Produced Surplus and Fairness Ideals – An Experiment
Fairness considerations are important determinants of behavior in unstructured bargaining situations with equal bargaining power. If the surplus over which the bargaining takes place was created byExpand
Coordination Failure Caused by Sunspots
In a coordination game with Pareto-ranked equilibria, we study whether a sunspot can lead to either coordination on an inferior equilibrium (mis-coordination) or to out-of equilibrium behaviorExpand
Agglomeration and the public sector
Abstract I present a two-region model in which the actions of local governments can cause the agglomeration of population. A local public good is a centripetal force. The centrifugal force isExpand
The Importance of Time-Series Extrapolation for Macroeconomic Expectations
Abstract This article presents a simple experiment on how laypeople form macroeconomic expectations. Subjects have to forecast inflation and gross domestic product growth. By varying the informationExpand
Real-time tacit bargaining, payoff focality, and coordination complexity: Experimental evidence
The general finding is that when a payoff focal outcome requires a complicated coordination scheme bargainers tend to settle on a simpler and sometimes inefficient behavior. Expand
Rational inattentiveness in a forecasting experiment
While standard theory assumes rational, optimizing agents under full information, the latter is rarely found in reality. Information has to be acquired and processed—both involving costs. InExpand