Experimental Business Research Marketing, Accounting and Cognitive P

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Experimental Business Research Marketing, Accounting and Cognitive Perspectives VOLUME III

Edited by

RAMI ZWICK Hong Kong University of Science and Technology, China and

AMNONRAPOPORT University of Arizona, Tucson, U.S.A. and Hong Kong University of Science and Technology, China

Spri ringer

A C.I.P. Catalogue record for this book is available from the Library of Congress.

ISBN-10 0-387-24215-5 (HB) Springer Dordrecht, Berlin, Heidelberg, New York ISBN-10 0-387-24244-9 (e-book) Springer Dordrecht, Berlin, Heidelberg, New York ISBN-13 978-0-387-24215-6 (HB) Springer Dordrecht, Berlin, Heidelberg, New York ISBN-13 978-0-387-24244-6 (e-book) Springer Dordrecht, Berlin, Heidelberg, New York

Published by Springer, P.O. Box 17, 3300 AA Dordrecht, The Netherlands.

Printed on acid-free paper

All Rights Reserved © 2005 Springer No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Printed in the Netherlands.

Contents Preface Rami Zwick and Amnon Rapoport

vii

Chapter 1 The Rationahty of Consumer Decisions to Adopt and Utilize Product-Attribute Enhancements: Why Are We Lured by Product Features We Never Use? Shenghui Zhao, Robert J. Meyer and Jin Han

1

Chapter 2 A Behavioral Accounting Study of Strategic Interaction in a Tax Compliance Game Chung K. Kim and William S. Waller

35

Chapter 3 Information Distribution and Attitudes Toward Risk in an Experimental Market of Risky Assets David Bodoff, Hugo Levevq and Hongtao Zhang

57

Chapter 4 Effects of Idiosyncratic Investments in Collaborative Networks: An Experimental Analysis Wilfred Amaldoss and Amnon Rapoport

81

Chapter 5 The Cognitive Illusion Controversy: A Methodological Debate in Disguise that Matters to Economists Ralph Hertwig and Andreas Ortmann

113

Chapter 6 Exploring Ellsberg's Paradox in Vague-Vague Cases Karen M. Kramer and David V. Budescu

131

Chapter 7 Overweighing Recent Observations: Experimental Results and Economic Implications Haim Levy and Moshe Levy

155

V

vi

Experimental Business Research Vol. Ill

Chapter 8 Cognition in Spatial Dispersion Games Andreas Blume, Douglas V. DeJong and Michael Maier

185

Chapter 9 Cognitive Hierarchy: A Limited Thinking Theory in Games Juin-Kuan Chong, Colin F. Camerer and Teck-Hua Ho

203

Chapter 10 Partition Dependence in Decision Analysis, Resource Allocation, and Consumer Choice Craig R. Fox, David Bardolet and Daniel Lieb

229

Chapter 11 Gender & Coordination Martin Dufwenberg and Uri Gneezy

253

Chapter 12 Updating the Reference Level: Experimental Evidence Uri Gneezy

263

Chapter 13 Supply Chain Management: A Teaching Experiment Rachel Croson, Karen Donohue, Elena Katok and John Sterman

285

Chapter 14 Experiment-Based Exams and the Dif