The paper analyses on an experimental basis the phenomenon of non-optimal under-diversification in portfolio choice decisions and investigates the reasons behind it. The most important obstacles for optimal diversification are studied – the correlation neglect hypothesis and the overconfidence...

Voluntary environmental agreements are widely considered an alternative instrument to command-and-control policies or economic incentives and are frequently labeled “efficient” or “cost-effective.” In this article it is argued that voluntary agreements are much more limited in scope. It...

Traditionally economic theory assumes that preferences are stable facilitating positive predictions of economic policy. While there is conflicting experimental evidence on the temporal stability of cooperation preferences in public goods provision, surprisingly little is known about their...