One difference between economics experiments and psychology experiments is whether or not paying subjects salient rewards. Some studies only found the stake size effect on risk attitudes in the experiments with salient pays but no such effect in those with small fixed pays. This study examined...

We elicit homeowners' marginal willingness to pay (MWTP) for energy efficiency and low-carbon technologies in the context of replacement heating appliances. We exploit a novel within-between subject design that involves manipulating information in a two-stage discrete choice experiment (DCE) and...

In online commerce, a buyer cannot directly examine the product and has to rely heavily on the reliability of the seller. In this setting, the reputation of the seller, together with any other information signals on the quality of the product, can play an important role in determining the...

Background: Differences in contingent valuation (CV) estimates for identical healthcare goods can cast considerable doubt on the true economic measures of consumer preferences. Hypothetical nature of CV methods can potentially depend on the salience, context and perceived relevance of the good...

Public reputation mechanisms are an effective means to limit opportunistic behavior in markets suffering from moral hazard problems. While previous research was mostly concerned with the influence of exogenous feedback mechanisms, this study considers the endogenous emergence of reputation...

To avoid the dangerous consequences of climate change, humans need to overcome two intertwined conflicts. First, they have to deal with an intra-generational conflict that emerges from the allocation of costs of climate change mitigation among different actors of the current generation. Second,...

This paper argues that the Kyoto Protocol to the 1992 Framework Convention on Climate Change was doomed to face difficulties ab initio. It explains why this is the case by analyzing the Kyoto Protocol’s shortcomings and deficiencies. Moving the climate change agenda forward multilaterally...

Many decisions made by authorities pose uncertain consequences for the individuals affected by them, yet people must determine the extent to which they will support the change. Integrating the social justice and behavioral decision theory literatures, the article argues that individuals...

Safety nets may reduce incentives to mitigate risks, and adversely affect people’s behavior. We model the safety net problem as a social dilemma game involving moral hazard, risk taking and limited liability. Individuals take costly measures to avoid a likely loss which, if incurred, is...