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We present a theoretical framework which explains the optimizing behavior of individuals who are exposed to many latent stimuli but prone to experience only the most salient one. We show that individuals with such preferences may find it optimal to engage in seemingly dysfunctional behavior such...
Persistent link: https://www.econbiz.de/10012910664
We perform an experiment to measure how changes in the effort exerted by a small fraction of a low-reward group affect the willingness of the high-reward group to vote for redistributive taxation. We find that a substantial fraction of high reward subjects vote in favor of greater redistribution...
Persistent link: https://www.econbiz.de/10012918635