We examine decision-making under risk and uncertainty in a laboratory experiment. The heart of our design examines how … one’s propensity to use Bayes’ rule is affected by whether this rule is aligned with reinforcement or clashes with it … payoff reinforcement and Bayesian updating are aligned, nearly all people respond as expected. However, when these forces …

second experiment show that more intuitive decision makers rely more often on the “reinforcement heuristic” where successful … experiment, we find that higher report scores are associated with an increased use of the representativeness heuristic … magnitude of incentives. …

equilibrium under agency. Regarding economic incentives, the principal has to adjust the incentives away from the first …-best incentives that would arise in the absence of peer pressure. In equilibrium less productive agents exert less effort and all …

We study the effects of peer pressure on the incentives of riskaverse agents. We define the peer pressure function and … to which they respond to peer pressure. We show that a principal provides incentives that depend on the effects of peer …

differences in betting odds or rankings to measure ability differences, our results support standard tournament theory as we find … a highly significant negative impact of the matchup's heterogeneity on joint teame efforts. However, further analysis …

Following tournament theory, incentives will be rather low if the contestants of a tournament are heterogeneous. We … also investigate the effect of a changing spread between winner and loser prize. In line with theory, teams reduce effort …

the incentives, however, is greatly affected by the existence of unobserved heterogeneity among workers. Its omission … the incentives created by public regulations. We improve upon the extensive prior literature on the effect of pension … incentives on retirement in two ways. First, by modeling the transitions between employment, unemployment and retirement in a …

empirical inquiries. Researchers have found that mismanagement is often a consequence of misplaced incentives. This paper tries … incentives. An introduction is given as a short overview of the healthcare sector with its economical specialties. This is … followed by an outline of some well established contract models and their effect on the demander’s incentives. The paper …

. Our experiment investigates the impact of performance pay on both incentives and sorting and analyzes the influence of … performance pay. Social motivation and reputation influence both the provision of incentives and their sorting effect. …