Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22973
Authors: 
von Hagen, Jürgen
Kube, Sebastian
Kaiser, Johannes
Selten, Reinhard
Pope, Robin
Year of Publication: 
2006
Series/Report no.: 
Bonn econ discussion papers 2006,29
Abstract: 
In the decision-making process, there is a stage when choosers evaluate alternatives. Evaluation is complex especially when it involves the future exchange rate. In the complexity of predicting the future exchange rate, choosers may use prominent numbers and ratios. We furnish field and experimental evidence of major effects on exchange rate determination from prominent numbers and ratios that constitute nominal equalities and historical benchmarks. Theorizing and estimation of exchange rates can be enhanced via SKAT, the Stages of Knowledge Ahead Theory that allows prominent numbers and prominent ratios to be taken into account consistently in constructing decision models.
Subjects: 
nominalism
money illusion
unpredictability
experiment
SKAT the Stages of Knowledge Ahead Theory
prominent numbers
prominent ratios
JEL: 
D80
D81
F31
F33
Document Type: 
Working Paper

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