The current study provides the first experimental test of the compromise effect, i.e. the tendency to choose middle options, in a naturally occurring setting. Simultaneously, I propose and evaluate a novel nudge intended to stimulate active choice - the (un)compromise effect - a compromise...

In recent years, the Department of Justice (DOJ) has settled allegations of wrongdoing in the 2008-2009 financial crisis with multi-billion-dollar agreements with major financial institutions such as Bank of America, Citigroup, and Goldman Sachs. On the political left, voices such as Elizabeth...

In two laboratory and one pilot field study, we demonstrate that cause marketing, whereby firms link products with a cause and share proceeds with it, reduces charitable giving by consumers, even when it is costless to the consumer to buy on CM (versus not); further, instead of increasing total...

This paper argues that the relation between temptations and the level of consumption plays a key role in explaining the observed behaviors of the poor. Temptation goods are defined to be the set of goods that generate positive utility for the self that consumes them, but not for any previous...

As environmental behavior is still uncommon in developing countries and needs to be popularized, research on the factors for engaging in certain green practices is of high relevance. The aim of this study is to determine how self-interests of individuals of the Arctic zone of Russia influence...

Emotions were central to the development of economics, especially in utility theory in classical economics. While neoclassical utility theory basically abolished emotions, behavioural economics more recently reintroduced emotions in utility theory. Beyond utility theory, economic theorists use...

Choices made under risk appear to be different depending on decision problem either presented as an explicit description or experienced by subjects in a series of choices and outcomes. The difference, labeled the description-experience gap (DEG; Hertwig and Erev, 2009), has recently attracted a...

To empower consumers, it is necessary to improve their decision-making ability. Using behavioral economics as a foundation, four aspects will help to improve the decision of a consumer: A decision should be made deliberately, appropriately, optimally and acceptably. A deliberate decision can be...

Do firearm purchase delay laws reduce aggregate homicide levels? Using quasi-experimental evidence from a 6-month countrywide gun demand shock starting in late 2012, we show that U.S. states with legislation preventing immediate handgun purchases experienced smaller increases in handgun sales....