We theoretically show that agents with loss-averse preferences facing a decision to receive a bad financial payoff if …

in social image concerns and attitudes towards lying. We then test its predictions in a laboratory experiment. Subjects …

). We conduct a laboratory experiment in which subjects make decision on behalf of themselves and others in eighteen tasks … aversion, decoy effect, anchoring bias, endowment effect, and identifiable-victim bias. In our experiment, DMfO is DMfO …We examine whether biases identified in the behavioral-economics literature apply in decision-making for others (DMfO …

exchange. The experiment tightly tests the predictions of Kőszegi and Rabin (2006), as when the probability of forced exchange …

We design an experiment to test the hypothesis that, in violation of Bayes Rule, some people respond more forcefully to … information, and control for risk attitude. We find that the strength-weight bias affects expectations, but that its magnitude is … significantly lower than originally reported. Controls for non-linear utility further reduce the bias. Our results suggest that …