The wage effect of job-education vertical mismatch (i.e. overeducation) has only recently been investigated in the case of Ph.D. holders. The existing contributions rely on OLS estimates that allow measuring the average effect of being mismatched at the mean of the conditional wages...

We investigate how childhood cognitive skills affect strategic sophistication and adult outcomes. In particular, we emphasize the importance of childhood theory-of-mind as a cognitive skill. We collected experimental data from more than seven hundred children in a variety of strategic...

We analyze the choices between two technologies A and B that both exhibit network effects. We introduce a critical mass game in which coordination on either one of the standards constitutes a Nash equilibrium outcome while coordination on standard B is assumed to be payoff-dominant. We present a...

Anchoring is one of the most studied and robust behavioral biases, but there is little knowledge about its persistence in strategic settings. This article studies the role of anchoring bias in private-value auctions. We test experimentally two different anchor types. The announcement of a random...

Narratives pervade almost any aspect of our life and play a particularly important role in moral and prosocial decision-making. We study how positive (stories in favor of a prosocial action) and negative (stories in favor of a selfish action) narratives influence prosocial behavior. Our main...

Working hard is costly, so people should work wisely. Yet, they do not always work efficiently, spending their effort on tasks that do not bring tangible benefits. One reason that potentially amplifies inefficient working is that people work in social environments where they are observed and...

When group outcomes depend on minimal effort (e.g., disease containment, work teams, or indigenous hunt success), a classic coordination problem exists. Using a well-established paradigm, we examine how a common cognitive state (insufficient sleep) impacts coordination outcomes. Our data...

The author reports results from controlled laboratory experiments on the Laffer curve. Apart from studying the existence of the Laffer curve under exogenous taxation, he explores framing effects, productivity differences under the strategic method and the direct method, and cultural differences....

Social media have been credited with the potential of reinvigorating trust by offering new opportunities for social and political participation. This view has been recently challenged by the rising phenomenon of online incivility, which has made the environment of social networking sites hostile...

This paper studies the effects of two different frames on decisions in a dictator game. Before making their allocation decision, dictators read a short text. Depending on the treatment, the text either emphasizes their decision power and freedom of choice or it stresses their responsibility for...