DR@W
DR@W
Decision Research at Warwick (DR@W) is an interdisciplinary initiative which focuses on behavioural and experimental research of decision making.
Formed in January 2010, DR@W brings together researchers and students from Economics, Psychology, Statistics, Warwick Mathematics Institute, Warwick Manufacturing Group and Warwick Business School that are interested in current developments in the area of experimental and behavioural research.
The Department of Economics have created and manage a large computer laboratory for use with experiments.
Visit the Decision Research at Warwick website for further details.
DR@W Forum: Kristof Madarasz (LSE)
This paper offers a simple but general model of egocentric perspective-taking by postulating a link between the extent to which people project their beliefs onto others and to which they anticipate each others' projection. We provide direct evidence for this link and explore various predictions of such projective thinking. When people learn whether others oppose or support a norm in settings where dissent is costly, they infer antagonistic preferences. The more costly dissent is, the more average opinion concludes that the norm is genuinely popular. In trade, informed traders bluff too little, uninformed ones are cursed, and the predictions closely match the experimental evidence.