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 …

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