Economists usually assume that monetary incentives improve performance, and psychologists claim that the opposite may happen. We present and discuss a set of experiments designed to test these contrasting claims. We found that the effect of monetary compensation on performance was not monotonic....

Expected utility theory, prospect theory, and most other models of risky choice are based on the fundamental premise that individuals choose among risky prospects by balancing the value of the possible consequences. These models, therefore, require that the value of a risky prospect lie between...

Does the period over which individuals evaluate outcomes influence their investment in risky assets? Results from this study show that the more frequently returns are evaluated, the more risk averse investors will be. The results are in line with the behavioral hypothesis of 'myopic loss...

Even though the provision of equal opportunities for men and women has been a priority in many countries, large gender differences prevail in competitive high-ranking positions. Suggested explanations include discrimination and differences in preferences and human capital. In this paper we...

This paper proposes an experimental approach to studying different aspects of discrimination. We let participants play various games with opponents of distinct ethnic affiliation. Strategies based upon such ethnic affiliation provide direct evidence of ethnic discrimination. This approach was...