No behavior sits in a vacuum, and one behavior can greatly affect what happens next. We propose a conceptual frame within which a broad range of behavioral spillovers can be accounted for when applying behavioral science to policy challenges. We consider behaviors which take place sequentially...

We examine the feasibility of using a massively multiplayer online role-playing game (MMORPG) to test economic theories. As a test vehicle we use the well-known endowment effect. Even though our goods are entirely virtual, our results confirm earlier results that individuals with more trading...

The unskilled-and-unaware problem describes a negative relationship between one’s skill level and self-assessment bias: the less skilled are, on average, more unaware of the absolute and relative quality of their performance. In this paper, we study whether, and to what extent, the...

The aim of this study was to explore the occurrence of the overconfidence bias and the conjunction fallacy in betting behavior among frequent and sporadic bettors and to test whether it was influenced by the task format (probability vs. frequencies). Frequent bettors (N=67) and sporadic bettors...

This article introduces the emergency purchasing situation (EPS) as a distinct buying context. EPSs stem from an unexpected event (unanticipated need or timing of a need), as well as high product importance, which are associated with a short time frame for consumer decision-making. Our...

The ability to influence behaviour is central to many of the key policy challenges in areas such as health, finance and climate change. The usual route to behaviour change in economics and psychology has been to attempt to ‘change minds’ by influencing the way people think through...

We analyze one-shot Prisoner’s Dilemma decisions made by participants of the high-stakes TV game show The Manipulation, and document the influence of social life factors on economic decisions, alongside the participants’ rational considerations. In particular, we employ a social psychology...

This paper examines how consumers perceive fairness and enjoy the outcome of an emerging risky discount: the retail industry’s gambling or lottery type “scratch and save” (SAS) price promotions, in which the actual discount is determined by chance at the checkout.

The article presents a model that analyzes the optimal strategy of multi-product firms when consumers are affected by reference prices. Generally, the stronger the consideration of reference prices is, the more intensified the competition is and the lower are the prices and profits. In some...

Individual competitiveness is a personality trait of high importance. While substantial differences between individuals have been documented, the sources of this heterogeneity are not well understood. To contribute to this issue we conduct an incentivized field study with pre-school children. We...