The psychology literature provides ample evidence that people have difficulties taking the perspective of less-informed others. This paper presents a controlled experiment showing that this "curse of knowledge" can cause comparative overconfidence and overentry into competition. In a broader...

In an in influential study, Mas and Moretti (2009) found that worker effort is positively related to the productivity of workers who see him, but not workers who do not see him. They interpret this as evidence that social pressure can reduce free riding. In this paper we report an attempt to...

Previous studies have proposed a link between corruption and wages in the public sector. The present paper investigates this link using a laboratory experiment. In the experiment, public officials have the opportunity to accept a bribe and can then decide between a neutral and a corrupt action....