We study misaligned prices for logically related contracts in prediction markets. First, we uncover persistent arbitrage opportunities for risk-neutral investors between identical contracts on different exchanges. Examining the impact of several thousand dollars of transactions on the exchanges...

We design a laboratory experiment to test for image motives in a setting where decisions signal intelligence to a social audience. Money-maximizing behavior in the experiment sorts subjects by academic ability, as measured by performance on verbal analogy questions, across two levels of question...

Online publishing, social networks, and web search have dramatically lowered the costs of producing, distributing, and discovering news articles. Some scholars argue that such technological changes increase exposure to diverse perspectives, while others worry that they increase ideological...

We study an observable risk-return tradeoff for which risk "preferences" are normatively prescribed by the desire to win the game. The choice is whether to shoot a 2-pointer or a 3-pointer in professional (NBA) basketball. When trailing, teams should get more risk-loving as they fall further...