The Porter hypothesis suggests that environmental regulations, such as restricting firms to reduce pollution, stimulates innovations and create a win-win situation for the environment and for firms. It has received a great deal of attention from academics as well as bureaucrats who disagree...

We investigate experimentally whether the protégés' reaction to paternalism depends on the consequences of the paternalistic action to their well-being. We find that protégé punish a paternalist restricting their freedom of choice. Yet, this negative reaction is not based on principled...

This study investigates experimentally whether people in retrospective are self-aware that they engage in status-seeking behavior. Subjects participated in a real-effort task where effort translated into a donation to a charity. Within-subjects we varied the visibility of their performance...

This study investigates experimentally whether people in retrospective are self-aware that they engage in status-seeking behavior. Subjects participated in a real-effort task where effort translated into a donation to a charity. Within-subjects we varied the visibility of their performance...

Empirical evidences show that investors tend to be biased toward investing indomestic (home bias) and local (local bias) stocks. Familiarity is considered to be one of thereasons. A similar concept was proposed by Goldstein and Gigerenzer (1999, 2002), known asthe recognition heuristic: “when...

How do people make investment decisions when they receive outcome feedback? We examinedhow well the standard mean-variance model and two reinforcement models predict people’sportfolio decisions. The basic reinforcement model predicts a learning process that relies solelyon the portfolio’s...

E-nstructions facilitates the use of electronic instructions in computerized laboratory ex-periments in social sciences. In this article I provide a set of guidelines for the installationand the use of E-nstructions.

“Waste not want not” expresses our culture’s aversion to waste. “I could have gotten the samething for less” is a sentiment that can diminish pleasure in a transaction. We study people’s willingnessto “pay” to avoid this spoiler. In one scenario, participants imagined they were...

The existing literature acknowledges that a mismatch between the experimenter'sand the subjects' models of an experimental task can adversely aect the interpretation ofdata from laboratory experiments. We discuss why the two common experimental designs(between-subjects and within-subjects) used...

We study time preferences in a real-effort experiment with a one-month horizon. We report thattwo thirds of choices suggest negative time preferences. Moreover, choice reversal over time iscommon even if temptation plays no role. We propose and measure three distinct concepts ofchoice reversal...