This paper presents an experiment that evaluates the effect of financial incentives and complexity in political science … complexity promotes the highest degree of level-k strategic reasoning in every payment treatment. Standard financial incentives … voting experiments. To evaluate the effect of complexity we adopt a level-k reasoning model concept. This model by Nagel [1 …

rationality can affect effort provision, by shrouding attributes of the incentives. In our setting, complexity leads workers to …Using field and laboratory experiments, we demonstrate that the complexity of incentive schemes and worker bounded … cause large shifts in behavior. Our results illustrate important implications of complexity for designing and regulating …

rationality can affect effort provision, by shrouding attributes of the incentives. In our setting, complexity leads workers to …Using field and laboratory experiments, we demonstrate that the complexity of incentive schemes and worker bounded … cause large shifts in behavior. Our results illustrate important implications of complexity for designing and regulating …

Standard economics models require that financial incentives improve performance, while leading theories in psychology …

We examine experimentally the effect of complexity on individual decision making. We focus on credit choices, as they … have been widely criticized for their complexity in recent years. In a first study, we find that complexity in benefits … leads to random mistakes, while complexity in costs leads to a specific mistake: choosing a high-benefit loan, with very …