The common practice in household questionnaires of surveying the most knowledgeable household member can lead to inaccurate data if they have limited information. Using survey experiments in Paraguay and Uganda, we investigate whether there are discrepancies in intra-household reporting on...

I show that workers update expectations about job search and salary growth when exposed to labor market news. To identify the impact of news on expectations, I exploit Foxconn's announcement to build a large production plant in Racine County, Wisconsin. Exposure to positive news leads to an...

Recent research documents mounting evidence for sizable and persistent biases in individual labor market expectations. This paper incorporates subjective expectations into a general equilibrium labor market model and analytically studies the implications of biased expectations for wage...

Labour markets are constantly subject to exogenous factors such as technological change and trade shocks. Beyond their direct effects, these factors are likely to affect workers’ fears of losing their job in the foreseeable future. We therefore investigate workers’ reactions to increased job...

Most common physician payment schemes include some form of traditional capitation or fee-for-service payment. While health economics research often focuses on direct incentive effects of these payments, we demonstrate that the opportunity to sort into one’s preferred payment scheme may also...

In an experimental setting impulse-response behaviour in intuitive inflation forecasting is analysed. Participants were asked to forecast future values of inflation for a fictitious economy after receiving charts and lists of past values of inflation and output gap. Thirty periods were...

Previous experimental investigations have shown that expectations are not perfectly rational due to bias. Traditional adaptive models, however, in many cases do not perfectly describe the formation of expectations either. This paper makes two contributions to the experimental literature on the...

This experimental study investigates the interaction of two influential factors of biased probability judgments. Results provide new insights on the preconditions for an application of either the gambler’s fallacy or its exact opponent, the hot hand fallacy. The first factor is cognitive...

The Australian Government launched the My School website in 2010 to provide standardised information about the quality of schools to the Australian public. This paper combines data from this website with home sales data for the state of Victoria to estimate the effect of the publication of...

In this paper we investigate the influence of financial incentives on agents’ commitment success who use a self-bet mechanism to overcome their self-control problems. We use results from the theoretical model developed in Hirt-Schierbaum and Ivets (2020) that allows for heuristic bias in...