Showing 1 - 7 of 7
We study Nature's trade-off when endowing people with the cognitive ability to distinguish between different time periods or different prizes. Our key premise is that cognitive ability is a scarce resource, to be deployed only where and when it really matters. We show that this simple insight...
Persistent link: https://www.econbiz.de/10010356713
We consider a society with informed individuals (adults) and naive individuals (children). Adults are altruistic towards their own children and possess information that allows to better predict the behavior of other adults. Children benefit from adopting behaviors that conform to the social norm...
Persistent link: https://www.econbiz.de/10010224768
People often form expectations about others using the lens of their own attitudes (the so-called consensus effect). We study the implications of this for trust and trustworthiness. Trustworthy individuals are more \optimistic" than opportunists and are accordingly less afraid to engage in...
Persistent link: https://www.econbiz.de/10010194809
We use a simple cost-benefit analysis to derive optimal similarity judgments - addressing the question: when should we expect a decision maker to distinguish between different time periods or different prizes? Our key premise is that cognitive resources are costly and are to be deployed only...
Persistent link: https://www.econbiz.de/10012058613
This paper focuses on belief distortion in the context of lying decisions. We employ a twostage variant of the "dice under the cup" paradigm, in which subjects' beliefs are elicited in stage 1 before performing the dice task in stage 2. In stage 1, we elicit the subjects' beliefs about (i)...
Persistent link: https://www.econbiz.de/10012058620
the causal relationship running from inequality to instability. Specifically, we conduct a laboratory experiment. In the … experiment, two groups are interacting with each other repeatedly and have an incentive to cooperate even though cooperation … comes at the cost of inter-group inequality. In the second half of the experiment, we vary the extent of the inequality …
Persistent link: https://www.econbiz.de/10014444823
causal relationship running from inequality to social instability. We run a laboratory experiment in which two groups …
Persistent link: https://www.econbiz.de/10014529307