In an experiment, we test the impact of quality certificates on donations to a charity. Compared to the control group, participants presented with a quality certificate chose higher donations by around 10% and reported higher trust in the same charity. The choice of donation values over time...

We investigate whether people are influenced to make investment decisions based on random shock signals and to what extent they do so by exploiting a unique data set from a popular Chinese lottery game with over one million observations. We first present evidence that people, as individual...

We conduct the first empirical economic investigation of the decision to cheat by university students. We investigate student demand for essays, using hypothetical discrete choice experiments in conjunction with consequential Holt–Laury gambles to derive subjects’ risk preferences....

We present a theory of discrete choice with information costs that supports deliberate stochastic choice. We use a unique experimental dataset to distinguish between errors arising from limitations on a decision maker's cognitive abilities and conscious disregard of information. Experimental...

Using online price comparison and shopping platforms makes experiencing slow connections, lags and waiting times for information an unfortunate reality. However, little attention has been paid to analyzing the effects of such delayed display of information on product choice behavior. This...

Many of the most significant risks that people face in their lives are left-skewed, i.e., imply large losses with only small probability. I characterize skewness in binary risks, which are widely applied in both economic models and experiments. Moreover, I provide an explicit re-parametrization...

Recognizing that many banks suffered trading losses that notably exceeded their minimum capital requirements during the recent crisis, the Basel Committee on Banking Supervision (2011) revised its regulatory framework for trading portfolios. In this paper, we compare: (1) the relative...

Economists and psychologists have developed a variety of experimental methodologies to elicit and assess individual risk attitudes. Choosing which to utilize, however, is largely dependent on the question one wants to answer, as well as the characteristics of the sample population. The goal of...

We use a laboratory experiment to examine whether and to what extent other-regarding preferences (efficiency, inequality aversion and maximin concerns) of team managers influence their management style in choice under risk. We find that managers who prefer efficiency are more likely to exercise...

Psychologists have described the working of the human brain as a combination of two systems – a dual process model. One system is intuitive and automatic (System 1) and the other is reflective and rational (System 2). To determine what insights this model has for stigma – such as fears of...