Tag Archives: Ernst Fehr

Managing the expectations trade-off: Why flexible agreements often prove counter-productive

A common criticism of economics is that economic theory often fails to predict real world events, spectacularly so in some cases. More recently, however, a more empirical approach to economics has emerged that combines economic theory, psychology, and laboratory experimentation, in order to better understand decision making in real life situations.

7 min read Continue reading Managing the expectations trade-off: Why flexible agreements often prove counter-productive