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In an experiment that elicits subjects' willingness to pay (WTP) for the outcome of a lottery, we confirm the fourfold pattern of risk attitudes described by Kahneman and Tversky. In addition, we document a systematic effect of stake sizes on the magnitude and sign of the relative risk premium,...
Persistent link: https://www.econbiz.de/10013388772
We combine societal-level institutional measures from 51 countries between 1996 and 2017 with individual decision-making outcome data from 1,126 laboratory experiments in six meta-analyses to evaluate the effects of within-country institutional change on pro-social and Nash behavior. We find...
Persistent link: https://www.econbiz.de/10015145080
situation. This can lead to adverse policing outcomes. To test this perspective, we created a new training that teaches officers …
Persistent link: https://www.econbiz.de/10014372408
test and confirm the central predictions of our model for perceptions of complexity, behavioral attenuation, and decision …
Persistent link: https://www.econbiz.de/10015145060
Rational agents must perform backwards induction by thinking contingently about future states and actions, but failures of backwards induction and contingent reasoning are ubiquitous. How do boundedly-rational agents make decisions when they fail to correctly forecast actions in the future? We...
Persistent link: https://www.econbiz.de/10013361987
The influence of behavioral biases on aggregate outcomes like prices and allocations depends in part on self-selection: whether rational people opt more strongly into aggregate interactions than biased individuals. We conduct a series of betting market, auction and committee experiments using 15...
Persistent link: https://www.econbiz.de/10013334479
We study how people think others update their beliefs upon encountering new evidence. We find that when two individuals share the same prior, one believes that new evidence cannot systematically shift the other's beliefs in either direction (Martingale property). When the two have different...
Persistent link: https://www.econbiz.de/10015171664
We analyze the offering, asking, and granting of help or other benefits as a three-stage game with bilateral private information between a person in need of help and a potential help-giver. Asking entails the risk of rejection, which can be painful: since unawareness of the need can no longer be...
Persistent link: https://www.econbiz.de/10013388842
We study the generation, transmission, and effects of causal narratives - narratives which describe a (potentially incorrect) causal relationship between variables. In a controlled experiment, we show that exogenously generated causal narratives manipulate the beliefs and actions of subjects in...
Persistent link: https://www.econbiz.de/10013362000
We conduct a novel lab experiment in which pairs of subjects make separable decisions about allocative efficiency and equity in different agency structures. In terms of equity, subjects appropriate all surplus when they can, and share equally when they have to negotiate. They achieve high...
Persistent link: https://www.econbiz.de/10013362003