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...

Complementing the existing literature on anchoring effects and loss aversion, we analyze how firms can influence loss–averse consumers’ willingness to pay by product information in the form of informative advertising rather than by prices. We find that consumers’ willingness to pay is...

Complementing the existing literature on anchoring effects and loss aversion, we analyze how firms can influence loss–averse consumers’ willingness to pay by product information in the form of informative advertising rather than by prices. We find that consumers’ willingness to pay is...

Complementing the existing literature on anchoring effects and loss aversion, we analyze how firms can influence loss-averse consumers' willingness to pay by product information in the form of informative advertising rather than by prices. We find that consumers' willingness to pay is greatest...

People contribute more to public goods, the more others give (“crowding-in”). We investigate two possible causes of crowding-in: reciprocity, the usual explanation, and conformism, a neglected alternative. The issue is important since conformism has more scope to bring about endogenous...

We extend the discrete-choice rational inattention model to the case in which the decision maker can influence the payoff distribution across states. By reducing the gap between payoffs in different states, the decision maker is able to affect her own incentives to pay attention. The smaller the...