The conjunction fallacy occurs whenever probability compounds are thought of as more likely than its component probabilities alone. In the experiment we present, subjects chose between simple and compound lotteries after some practice. Depending on the condition, they were given more or less...

Cooperation problems are at the heart of many everyday situations. In this paper, we propose a very simple and light-handed mechanism to sustain cooperation and test its performance in a rich laboratory environment. The mechanism moderates cooperation by controlling experiences, more...

The experiment presented in this paper employs 3 x 3 games to analyze how perception of a game affects behavior in the presence or absence of a minimal framing effect and of uncertainty about the values of some game payoffs. We vary the harmony of practice stage games, and explain how this...

We present an experiment that models a repeated public good provision setting where the policy maker or manager does not have perfect control over information flows. Rather, information seeking can be affected by changing the information default as well as the price of information. The default...

We present an experiment that models a repeated public good provision setting where the policy maker or manager does not have perfect control over information flows. Rather, information seeking can be affected by changing the information default as well as the price of information. The default...

Cooperation problems are at the heart of many everyday situations. In this paper, we propose a very simple and light-handed mechanism to sustain cooperation and test its performance in a rich laboratory environment. The mechanism moderates cooperation by controlling experiences, more...

We consider an experimental setting where agents receive one stylized piece of information at a time about the value of a lottery. We find that Knightian uncertainty about the prior distribution of true lottery values does not hamper decision making by agents and markets. On a mean squared error...

We consider an experimental setting where traders in stock markets or exchange rate markets receive one stylized piece of information at a time about the value of an asset. We find that having limited knowledge about the prior distribution of true asset values does not hamper the decision making...

Using controlled and incentivized decision experiments, we explore whether the length of compliance periods in patent examinations affects behaviour and the overall efficiency of the system. In our stylized experiments, participants decide in the role of a patentee who faces uncertainty about...

We analyze lottery-choice data in a way that separately estimates the effects of risk aversion and complexity aversion, and allows both both of these to vary between individuals, and also to change with experience. The data is from an experiment in which 80 subjects engage in a sequence of 54...