Powdthavee, Nattavudh; Riyanto, Yohanes E. - Institute for the Study of Labor (IZA) - 2012
We investigated experimentally whether people can be induced to believe in a non-existent expert, and subsequently pay for what can only be described as transparently useless advice about future chance events. Consistent with the theoretical predictions made by Rabin (2002) and Rabin and Vayanos...