We analyze the very short-term causal impact of exposure to one of the most powerful storms ever recorded to strike land on locus of control, reciprocity, and risk preferences within a sample of 2,352 individuals. We find that people exhibit significantly lower external locus of control,...

Giving consumers choice can improve welfare in principle. In this study, we explore the financial consequences of choice and information provision in the Swiss mandatory health insurance market that entails non-optimal options by design. This market is characterized by a significant...

Is dishonesty more prevalent in interaction with a machine as opposed to a human? We analyze this question using an innovative experimental setup involving the reporting of an unobserved payout-relevant random draw either to a chatbot or another human in a chat interaction while also varying the...

Incentivizing unobservable effort in risky environments, such as in insurance, credit, and labor markets, is vital as moral hazard may otherwise cause significant welfare losses including the outright failure of markets. Ensuring incentive-compatibility through state-contingent contracts between...

Insurance contracts may fail to perform, leading to a default on valid claims. We relax the standard assumption of known probabilities for such defaults by allowing for uncertainty. Within a large behavioral experiment, we show that introducing risk and uncertainty each leads to significant...