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Policymakers are increasingly interested these days in how they can achieve desired outcomes using 'nudges' - low-cost and non-obtrusive interventions which rely on psychological mechanisms, rather than high-powered economic incentives, to influence people's behaviour. This paper applies the...
Persistent link: https://www.econbiz.de/10011660781
This paper provides an empirical demonstration of high stakes incentives in relation to religious practice. It shows that, when both positive (carrot) and negative (stick) incentives are available, the former are more effective than the latter. Specifically, it is shown that beliefs in heaven...
Persistent link: https://www.econbiz.de/10010268759
Punishment has been shown to be an effective reinforcement mechanism. Intentional or not, punishment will likely …: the voluntary contributions mechanism. We find that spillovers occur when others observe punishment outside their own … social dilemma. However, the specific effect of these spillovers depends on one’s personal punishment history which …
Persistent link: https://www.econbiz.de/10014153702
Originally, behavioral law and economics was an exercise in exploring the implications of key findings from behavioral economics (and psychology) for the analysis and reform of legal institutions. Yet as the new discipline matures, it increasingly replaces foreign evidence by fresh evidence,...
Persistent link: https://www.econbiz.de/10009692661
Under common law, the standard remedy for breach of contract is expectation damages. Under continental law, the standard is specific performance. The common law solution is ex post efficient. But is it also ex ante efficient? We use experimental methods to test whether knowing that...
Persistent link: https://www.econbiz.de/10012954015
Originally, behavioral law and economics was an exercise in exploring the implications of key findings from behavioral economics (and psychology) for the analysis and reform of legal institutions. Yet as the new discipline matures, it increasingly replaces foreign evidence by fresh evidence,...
Persistent link: https://www.econbiz.de/10014161485
Group identity is known to exert a powerful socio-psychological influence on behaviour but to date has been largely explored as a uni-dimensional phenomenon. We consider the role of multiple dimensions of identity, asking what might happen to ingroup and outgroup perceptions and the resulting...
Persistent link: https://www.econbiz.de/10012619799
Economic inequality may fuel frustration, possibly leading to anger and antisocial behavior. We experimentally study a situation where only the rich can reduce inequality while the poor can express their discontent by destroying the wealth of a rich counterpart with whom they had no previous...
Persistent link: https://www.econbiz.de/10012064378
Economic inequality may fuel frustration, possibly leading to anger and antisocial behavior. We experimentally study a situation where only the rich can reduce inequality while the poor can express their discontent by destroying the wealth of a rich counterpart with whom they had no previous...
Persistent link: https://www.econbiz.de/10012058343
Existing experimental research on behavior in weakest-link games shows overwhelmingly the inability of people to coordinate on the efficient equilibrium, especially in larger groups. We hypothesize that people will be able to coordinate on efficient outcomes, provided they have sufficient...
Persistent link: https://www.econbiz.de/10010280645