Testosterone administration appears to make individuals less trusting, and this effect was interpreted as an adaptive adjustment of social suspicion, that improved the accuracy of trusting decisions. Here we consider another possibility, namely that testosterone increases the subjective cost of...

We test the hypothesis that "genuine" or "convincing" smiling is a costly signal that has evolved to induce cooperation in situations requiring mutual trust. Potential trustees in a trust game made video clips for viewing by potential trusters before the latter decided whether to send them...

We present an experimental lab-in-the-field study on co?ee farmers in Costa Rica, to investigate the importance of real world institutions on abstract game behavior. Farmers participated in experimental public-good games with partners drawn either from their own or di?erent from their own...

Due to its long-lasting internal armed conflict, Colombia has witnessed a rupture in social networks. The network composition was altered for municipalities with high in- or out-flows of displaced individuals, in addition to the individual impact on the displaced. We use a controlled laboratory...

The capacity to trust wisely is a critical facilitator of success and prosperity, and it has been conjectured that people of higher intelligence were better able to detect signs of untrustworthiness from potential partners. In contrast, this article reports five Trust Game studies suggesting...

We present the results of an experiment measuring social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off and implement a cross-country...

Investment behavior is traditionally investigated with the assumption that it is on average advantageous to invest. However, this may not always be the case. In this paper, we experimentally studied investment choices made by students and financial professionals facing alternately an...

When investment is repeated, previous outcomes (winning/losing) as well as the current budget level (gain/loss domain) influence decisions. The first is related to the so-called "gamblers fallacy". The second to value function relative to some reference point. Both effects have been extensively...

Models of household economics require an understanding of economic interactions in families. Social ties, repetition and reduced strategic uncertainty make social dilemmas in couples a very special case that needs to be empirically studied. In this paper we present results from a large economic...

This experimental study is concerned with the impact of the timing of the resolution of risk on investment behavior, with a special focus on the role of affect. In a between-subjects design we observe the impact of a substantial delay of risk resolution (2 days) on investment choices. Besides...