We perform an experiment where subjects pay for the right to participate in a shareholder vote. We find that experimental subjects are willing to pay a significant premium for the voting right even though there should be no such premium in our setup under full rationality. Private benefits from...

Many committees - juries, political task forces, etc. - spend time gathering costly information before reaching a decision. We report results from lab experiments focused on such information-collection processes. We consider decisions governed by individuals and groups and compare how voting...

Payment for ecosystem service (PES) programs incentivize farmers to implement agricultural best management practices (BMPs) with the goal of reducing nutrient and sediment runoff and improving water quality. These programs are widespread at both the federal and state level. Because some farmers...

This paper revisits a vertically differentiated duopoly game where producers first simultaneously set qualities and then simultaneously set prices. We theoretically and experimentally explore the impact of different consumers’ preferences dispersion levels. We find that firms suboptimally...

We report on experiments to replicate Plott and Zeiler's (2005) findings that the WTP-WTA gap disappears when using procedures that are aimed at reducing misunderstandings, such as training rounds for the BDM mechanism. Following the design by Plott and Zeiler (2005) and Isoni, Loomes, and...

Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour...

Recent research suggests that auction winners sometimes fall prey to a "bidder's curse", paying more for an item at auction than they would have paid at a posted price. One explanation for this phenomenon is that bidders are inattentive to posted prices. We develop a model in which bidders'...

Using a choice experiment conducted among more than a thousand Swiss consumers, we analyze the individual demand for voluntary carbon offsets in different contexts. The analysis is used to identify the consumers’ underlying motives for offsetting emissions, the context effects on their...

Chetty, Looney and Kroft (2009) find that consumers perceive tax-salience as a price increase, i.e. sales decrease when posting tax-inclusive prices. Using data from their unique experiment, I test whether individuals display inattention to the decimal digits of the price (i.e. left-digit bias)....

A leading approach to understanding significant discrepancies between observed willingness to pay (WTP) and willingness to accept (WTA) in policy evaluation is the “endowment effect” — that preferences are based on a reference point or anchor that leads WTA to exceed WTP. Unlike assertions...