This paper investigates whether people’s ability to withstand and adapt to one of the most important economic shocks – job loss – is determined early on in childhood. Using nationally representative longitudinal data that tracks almost 3,000 children into adulthood, we show that the...

The incentive effect of a handicap in a tournament competition is studied. A handicap may decrease the effort levels of the advantaged group or the disadvantaged group. However, the average effort level will always increase as long as the performance measure is informative of effort in a...

Experimental studies have compared cooperation across different nonmarket social dilemma settings, but the experimental literature has largely overlooked comparing cooperation across market and nonmarket settings. This paper reports the results from an experiment that compares behavior in...

The world-wide inflation in executive compensation in recent years has been accompanied by an increase in the prevalence of long-term incentives. This article demonstrates how the subjectively perceived value of long-term incentives is affected by risk aversion, uncertainty aversion, and time...

We conduct a controlled lab-field experiment to directly test the short-run spillover effects of one-off financial incentives in health. We consider how incentives affect effort in a physical activity task – and then how they spillover to subsequent eating behaviour. Compared to a control...

Abdulkadiroglu et al. (2011) show that some naive participants may be better off under the Boston mechanism than under deferred acceptance. Here we show that under the veil of ignorance all naive students may prefer the Boston mechanism.