Rosemarie Nagel

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". . . professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that each competitor has to pick, not those(More)
History contains many colorful examples where speculative trade in some commodity or financial asset generated a phase of rapidly increasing prices, followed by a sudden collapse (see, e.g., Edward Chancellor, 1999, or Charles Kindleberger, 2001). One famous case cited by many economists (see Peter Garber, 2000, pp. 127–31, for references) is the Dutch(More)
We used functional MRI (fMRI) to investigate human mental processes in a competitive interactive setting--the "beauty contest" game. This game is well-suited for investigating whether and how a player's mental processing incorporates the thinking process of others in strategic reasoning. We apply a cognitive hierarchy model to classify subject's choices in(More)
Acknowledgments: We wish to thank Ernan Haruvy for his comments on a preliminary version. We acknowledge financial support from the Spanish Ministry of Education through grants SEC98-1853-CE and DGES PB96-0300, and the EU-TMR Research Network ENDEAR (FMRX-CT98-0238). We thank the Spanish newspaper Expansión and the German magazine Spektrum der Wissenschaft(More)
This paper explores predictability of behavior in coordination games with multiple equilibria. In a laboratory experiment we measure subjects’ certainty equivalents for three coordination games and one lottery. Attitudes towards strategic uncertainty in coordination games are related to risk aversion, experience seeking, gender and age. From the(More)
A typical consumer decision involves choosing between a large number of options under time pressure. This gives rise to three important questions: (1) What are the computational processes used by consumers to make these choices? 2) How do the processes, and their performance, change with the number of options? And (3) Do they exhibit systematic biases that(More)
This chapter surveys laboratory experiments addressing macroeconomic phenomena. The first part focuses on experimental tests of the microfoundations of macroeconomic models discussing laboratory studies of intertemporal consumption/savings decisions, time (in)consistency of preferences and rational expectations. Part two explores coordination problems of(More)
This paper reports the rst experimental study of the serial and the average cost pricing mechanism under three diierent treatments: a complete information treatment and two treatments designed to simulate distributed systems like the internet with extremely limited information, synchronous and asynchronous moves. Under the complete information treatment(More)
The theory of global games has shown that coordination games with multiple equilibria may have a unique equilibrium if certain parameters of the payoff function are private information instead of common knowledge. We report the results of an experiment designed to test the predictions of this theory. Comparing sessions with common and private information,(More)