When workers send applications to vacancies they create a network. Frictions arise if workers do not know where other workers apply to (this affects network creation) and firms do not know which candidates other firms consider (this affects network clearing). We show that those frictions and the...

Authority and power permeate political, social, and economic life, but empirical knowledge about the motivational origins and consequences of authority is limited. We study the motivation and incentive effects of authority experimentally in an authority-delegation game. Individuals often retain...

Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue that the connection between overconfidence and innovation is more complex than the previous literature suggests. In particular, we show theoretically and experimentally that...

Theory of mind and individual preferences are important determinants in social decision making. The current study examined in a large sample whether being a cooperative preference type is related with better theory of mind skills. Furthermore, by testing adolescents and adults, we examined the...

We examine peer effects in risk taking with complete information and compare explanations for peer effects based on relative payoff concerns to explanations that allow peer choices to matter. We vary experimentally whether individuals can condition a simple lottery choice on the lottery choice,...

Many information structures generate correlated rather than mutually independent signals, the news media being a prime example. This paper shows experimentally that in such contexts many people neglect these correlations in the updating process and treat correlated information as independent. In...

This paper explores the role of information transmission and misaligned interests across levels of government in explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal-agent framework, it analyzes two alternative...

Helping job seekers to identify suitable jobs is a key challenge for policy makers. We develop and evaluate experimentally a novel tool that provides tailored advice at low cost and thereby redesigns the process through which job seekers search for jobs. We invited 300 job seekers to our...

In recent years, Europe has experienced an unprecedented influx of refugees. While natives' attitudes toward refugees are decisive for the political feasibility of asylum policies, little is known about how these attitudes are shaped by refugees' characteristics. We conducted survey experiments...

We present an equilibrium model with inter-linked labour and marriage markets, and argue that search frictions play an important role in explaining the male marriage premium. If men are viewed as bread-winners within households, this expectation affects their job search behaviour, which in turn...