Personal experience matters. In a field setting with longitudinal data, we disentangle the effects of learning new information from the effects of personal experience. We demonstrate that experience with a fine, controlling for the effect of learning new information, significantly boosts future...

In this paper, we disentangle the effects of new information from the effects of personal experience to describe how personal experience changes behavior. We examine personal experience with one of the most ubiquitous managerial and policy tools: the monetary fine. We demonstrate that experience...