We develop a dynamic discrete choice model of training choice, employment and wage growth, allowing for job mobility, in a world where wages depend on firm-worker matches, as well as experience and tenure and jobs take time to locate. We estimate this model on a large administrative panel data...

This paper develops and tests a migration choice model that incorporates two prominent migration strategies used by households facing risk and liquidity constraints. On the one hand, migration can be used as an ex-post risk-coping strategy after sudden negative income shocks. On the other hand,...

This note demonstrates that two minimal requirements of decision tree analysis, the folding back procedure and the interchangeability of consecutive event nodes, imply independence.

Experiments frequently use a random incentive system (RIS), where only tasks that are randomly selected at the end of the experiment are for real. The most common type pays every subject one out of her multiple tasks (within-subjects randomization). Recently, another type has become popular,...

This paper explicitly solves a dynamic portfolio choice problem in which an investor allocates his wealth between a riskless and a risky asset. The solution shows that insights gained from studying static portfolio choice problems do not necessarily carry over to dynamic choice settings. For...

The aim of this paper is to explore the links between brand equity, consumer learning and consumer choice processes in general, and considering two recent trends in the market place: store brands and the Internet. We first review the advances that have occurred in brand equity research in...

In this paper, we develop a structural model of household behavior in an environment where there is uncertainty about brand attributes and both prices and advertising signal brand quality. Four quality signaling mechanisms are at work: (1) price signals quality, (2) advertising frequency signals...

This paper studies the application of the two most popular non-expected utility (NEU) models -Choquet Expected Utility (CEU) and Maximin Expected Utility (CEU)- to dynamic choice situations in a purely subjective framework. We give an appropriate version of the reduction of compound acts axiom,...