Does U.S. military aid make the United States safer? To answer this question, we collect data on 173 countries between 1968 and 2014. Exploiting quasi-random variation in the global patterns of U.S. military aid, our paper is the first to provide causal estimates of the effect of U.S. military...

Political polarization has ruptured the fabric of U.S. society. The focus of this paper is to examine various layers of (non-)strategic decision-making that are plausibly affected by political polarization through the lens of one's feelings of hate and love for Donald J. Trump. In several...

Achieving successful behavior change via nudging is hard. This is particularly true when choice architects attempt to change behavior that is collectively harmful but individually beneficial. In this paper, we review the state-of-the-art of the behavior change literature to assess both robust...

Economic theory suggests that the deterrence of deviant behavior is driven by a combination of severity and certainty of punishment. This paper presents the first controlled experiment to study a third important factor that has been mainly overlooked: the swiftness of formal sanctions. We...

We study how an individual's compliance with social norms is influenced by other actors' norm compliance. In a repeated non-strategic Take-or-Give donation experiment we show that giving is considered socially appropriate while taking is socially inappropriate. Observing norm violations erodes...

A stream of research examining the effect of punishment on conformity indicates that punishment can backfire and lead to suboptimal social outcomes. We examine whether this effect is due to a lack of perceived legitimacy of rule enforcement, enabling agents to justify selfish behavior. We...

Descriptive norms - the behavior of other individuals in one's reference group - play a key role in shaping individual decisions. When characterizing the behavior of others, a standard approach in the literature is to focus on average behavior. In this paper, we argue both theoretically and...

This paper examines how beliefs and preferences drive identity-conforming consumption or investments. We introduce a theory that explains how identity distorts individuals' beliefs about potential outcomes and imposes psychic costs on benefiting from identity-incongruent sources. We substantiate...