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Li (Am Econ Rev 107(11):3257–3287, 2017) introduces a theoretical notion of obviousness of a dominant strategy, to be used as a refinement in mechanism design. This notion is supported by experimental evidence that bidding is closer to dominance in the dynamic ascending-clock auction than the...
Persistent link: https://www.econbiz.de/10014501391
This paper reports an experiment designed to assess the influence of workplace arrangements on the reactions to (the absence of) control. We compare behavior in an Internet and a laboratory principal-agent game where the principal can control the agent by implementing a minimum effort...
Persistent link: https://www.econbiz.de/10014503936
, many people experience competitive contexts as stressful. We use two laboratory experiments to investigate whether factors …
Persistent link: https://www.econbiz.de/10012030251
Bayes' statistical rule remains the status quo for modeling belief updating in both normative and descriptive models of behavior under uncertainty. Some recent research has questioned the use of Bayes' rule in descriptive models of behavior, presenting evidence that people overweight `good news'...
Persistent link: https://www.econbiz.de/10012221615
I study the effect of task difficulty on workers' effort. I find that task difficulty has an inverse-U effect on effort and that this effect is quantitatively large, especially when compared to the effect of conditional monetary rewards. Difficulty acts as a mediator of monetary rewards:...
Persistent link: https://www.econbiz.de/10014501377
Intertemporal choices are affected by both discount rate and utility curvature. We investigate how the two aspects of time preference are affected by the size of the total budget using an intertemporal allocation task. At the aggregate level as well as at the individual level, we find magnitude...
Persistent link: https://www.econbiz.de/10014501381
Does political polarization lead to dysfunctional behavior? To study this question, we investigate the attitudes of supporters of Donald Trump and of Hillary Clinton towards each other and how these attitudes affect spiteful behavior. We find that both Trump and Clinton supporters display less...
Persistent link: https://www.econbiz.de/10014501447
We study self-selection into earning money in an honest or dishonest fashion based on individuals' attitudes toward truthful reporting. We propose a decision-theoretic framework where individuals' willingness to pay for honest earnings is determined by their (behavioral) lying costs. Our...
Persistent link: https://www.econbiz.de/10014501946
We present an interactive eye-tracking study that explores the strategic use of gaze. We analyze gaze behavior in an experiment with four simple games. The game can either be a competitive (hide & seek) game in which players want to be unpredictable, or a game of common interest in which players...
Persistent link: https://www.econbiz.de/10014503691
Experiments involving games have two dimensions of difficulty for subjects in the laboratory. One is understanding the …
Persistent link: https://www.econbiz.de/10014504346