This study evaluates people’s concerns for distributive fairness (equality of outcomes and payoffs to those worse-off) and reciprocal fairness (receiving what one is due based on one’s past actions) using dictator, ultimatum, and trust games. In the dictator games we classify individuals’...

We study the effects of the tax burden on tax evasion both theoretically and experimentally. We develop a theoretical framework of tax evasion decisions that is based on two behavioral assumptions: (1) taxpayers are endowed with reference dependent preferences that are subject to hedonic...

Attractive bonuses and large discounts are often successfully used to attract new customers and increase sales. However, from a marketing perspective these attractive opportunities might have a negative side effect, as they decrease subsequent sales to the consumers who missed them. In this...

Although previous studies of consumer choice have found that common features of alternatives are cancelled and that choices are based only on unique features, a recent study has suggested that common features are canceled only when they are irrelevant in regard to all unique features. The...

We provide a simple evolutionary explanation for the emergence of hedonic adaptation. The model’s key assumption is that, apart from guiding long-term behavior, some sensations fulfill warning and defense roles (e.g., pain). Contrary to the alternative evolutionary explanations for hedonic...

Previous experimental results have shown that the introduction of a minimum wage increases wages in a monopsonistic labor market. The results rely on the assumption that the minimum wage laws are common knowledge among employers and workers, which is often violated in less developed labor...

In a study by Shalvi, Dana, Handgraaf, and De Dreu (2011) it was convincingly demonstrated that psychologically, the distinction between right and wrong is not discrete, rather it is a continuous distribution of relative ‘rightness’ and ‘wrongness’. Using the ‘die-under-the-cup’...

Decision researchers conduct laboratory experiments of choice between real rewards, but also often rely on asking people to provide hypothetical answers to fictitious situations. Applying results from such studies to real-world situations requires understanding how decision making in cases...

This paper proposes and evaluates the tax affinity hypothesis claiming that individuals derive non-negligible utility from paying taxes due to their pro-social tendencies. We present a model in the neoclassical labor–leisure framework with tax paid as a third argument of the utility function....

This paper attempts to answer an interesting but empirically challenging question: Do changes in well-being (life satisfaction or happiness) lead to changes in consumption and savings behavior? The paper uses regional sunshine as an instrument for personal happiness using the Dutch Household...