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...

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...

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...

Through a series of decision tasks involving colored cards, we provide separate measures of Bayesian updating and non-probabilistic reasoning skills. We apply these measures to (and are the first to study) a common-value Dutch auction. This format is more salient than the strategically...

Anecdotal, empirical, and experimental evidence suggests that offering extrinsic rewards for certain activities can reduce people's willingness to engage in those activities voluntarily. We propose a simple rationale for this 'crowding out' phenomenon, using standard economic arguments. The...

Anecdotal, empirical, and experimental evidence suggests that offering extrinsic rewards for certain activities can reduce people's willingness to engage in those activities voluntarily. We propose a simple rationale for this "crowding out" phenomenon, using standard economic arguments. The...

Replications of experiments are typically conducted to verify initial findings, increase their external validity, or to study the boundary conditions of treatment effects. A crucial and implicitly made assumption is that outcome measures in experiments are sufficiently comparable (i.e.,...

Many empirical studies of online price dispersion show that sellers post different prices for homogeneous goods. However, seller heterogeneity is difficult to control for and posted prices may not reflect price dispersion in actual transactions. We contribute to this literature by selling...

We study the behavioral underpinnings of adopting cash versus electronic payments in retail transactions. A novel theoretical and experimental framework is developed to primarily assess the impact of sellers' service fees and buyers' rewards from using electronic payments. Buyers and sellers...