This month, Germany started to subsidize electric drive vehicles up to 4,000 EUR for the acquisition of a new car. Aimed at incentivizing emission reductions in the transport sector, the real impact on car sales still has to be assessed, …

There are two kinds of uncertainties in life. For the first type, you have information sources like weather forecasts, drug-package inserts, and mutual-fund brochures, all of which provide descriptions of possible outcomes (rainy or sunny, various complications, potential profits) and probabilities. …

I magine that a sailor sees clouds forming on the horizon, and estimates that it won’t be a major storm. She thus decides to stay on course. The next morning, she’s lashed by an hurricane. This problem is clearly one of imperfect information, not of discounting, i.e. of time preferences.

Continue Reading →

Today, the presentation of the new Tesla model once more reveals a great interest of certain consumers to engage in seemingly overly expensive goods such as buying Electric Drive Vechicles, making it perahaps look an irrationale choice. Yet, the price tag …

It may sound counter-intuitive that people would strategically avoid costless useful information. However, it is already observed that people indeed avoid information actively in various situations, from finance to management or even mourning…

How many times we tend to buy products that our peers own, being it a smartphone, an app or a car? People’s decisions often are influenced by the decisions made by their friends and neighbours. This has been found in a …