Showing 1 - 10 of 561
Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this …
Persistent link: https://www.econbiz.de/10010860227
We examine experimentally the effect of complexity on individual decision making. We focus on credit choices, as they have been widely criticized for their complexity in recent years. In a first study, we find that complexity in benefits leads to random mistakes, while complexity in costs leads...
Persistent link: https://www.econbiz.de/10011210868
We analyze how subjects’ self-assessment depends on whether its accuracy is observable to others. We find that women downgrade their selfassessment given observability while men do not. Women avoid the shame they may have if others observe that they overestimated themselves. Men, however, do...
Persistent link: https://www.econbiz.de/10011274508
People’s attachment to a subsidy creates difficulties for the government to phase out, and eventually eliminate, the subsidy. Elimination of fuel subsidy scheme in Indonesia is a perfect example of such occurrence. The subsidy has been implementing to commodity as opposed to households, thus...
Persistent link: https://www.econbiz.de/10011259031
We report experimental evidence on gender differences in financial decision that involves three depositors choosing between waiting or withdrawing their money from a common bank. We find that the position in the line, the fact of being observed and the observed decisions are key determinants to...
Persistent link: https://www.econbiz.de/10011259526
The paper attempts to test the following hypotheses: (i) Are people generally self interested, (ii) If people tend to … experiment in a “same gender pairings” setting in International Islamic University Islamabad, Pakistan. In order to test the … test the second hypothesis we compare the offers that proposers anticipate will be accepted by the responders and the …
Persistent link: https://www.econbiz.de/10011259998
This paper conducts a laboratory experiment to investigate the role of social connections in behavioral indirect reciprocity. We provide the evidence of spillovers effects of social ties, e.g., the recipient’s indirect reciprocal act varies with the relations between the donor and a third...
Persistent link: https://www.econbiz.de/10011260700
To study switching behavior, an experiment mimicking the state of a driver on the road was conducted. In each trial participants were given a chance to switch lanes. Despite the fact that lane switching had no sound rational basis, participants often switched lanes when the speed of driving in...
Persistent link: https://www.econbiz.de/10011260812
Fuel subsidy has been the biggest quandaries in Indonesian economy, as it has been creating a huge opportunity costs to the economy. The subsidy is implemented to a consumer good (i.e. fuels) as oppose to targeted recipients, creating distortion in the efficient resource allocation. It was...
Persistent link: https://www.econbiz.de/10009652025
The need for justification is a widely observed social phenomenon. This paper develops a theoretical framework and reports laboratory evidence to show how pure justification pressure affects cooperative behavior in economic exchange environments. In a one-shot anonymous interaction, compared...
Persistent link: https://www.econbiz.de/10009422008