Subjects who overestimate their performance in experimental tasks unrelated to travel are less willing to insure against failing in the task and also less inclined to buy travel insurance. This suggests intrinsic optimism influences insurance demand and diminishes adverse selection.

In a one-shot Prisoners’ dilemma experiment, female participants are highly sensitive to the social frame. Male participants are not.

This note presents results from modified dictator games in which the payoff-relevant game is either chosen randomly or by the recipients. We do not observe reciprocal behavior when recipients choose the game: Dictators do not condition their donations on the game chosen by recipients.

International cross-section demand systems have not been tested on their ability to accurately predict within country consumption expenditures. This paper reports on such a validation exercise for the case of food budget share predictions across expenditure percentiles within Bangladesh.

Welfare economics relies on consequentialism even though many philosophers have questioned this assumption. Survey evidence, based on a representative sample in Sweden, is presented here suggesting that most people’s ethical perceptions are consistent with consequentialism.

We observe that identification of the discount rate from experimental data requires an assumption about the consumption period, the length of time over which a payment will be turned into utility-providing consumption. We show that the optimal consumption period is substantially longer than...

Shotgun clauses are commonly included in the business agreements of partnerships and limited liability companies (LLCs), but the role of offeror typically remains unassigned. In a common-value, one-sided asymmetric information setting, unequal and inefficient outcomes occur with an unassigned...

In an experiment, a group of strangers was randomly divided in pairs to play a prisoners’ dilemma; this process was indefinitely repeated. Cooperation did not increase when subjects could send public messages amounting to binding promises of future play.