We examine in controlled experiments how individuals make choices when faced withmultiple options. The choice tasks mimic the selection of health insurance, prescriptiondrug, or retirement savings plans. However, in our experiment, the available options canbe objectively ranked. We ¯nd that the...

We extend the model of friendship networks developed by Brueck-ner (2006) in two ways. First, we extend the level of indirect bene…tsby incorporating bene…ts from up to three links and explore its impli-cation for the socially optimal and individual e¤ort levels. Next, wegeneralize the...