This paper theoretically and experimentally studies decision-making in risky and social environments. We explore the interdependence of individual risk attitudes and inequality aversion as two decisive behavioral determinants in such contexts. Our model and the data demonstrate that individual...

In a repeated real effort team production experiment workers receive a distorted signal about their co-players’ previous efforts. We vary the degree to which production can be directly traced back to a participant’s real or randomly drawn effort level. We find that individuals produce much...

In democracies, an absolute majority of the population may choose policies that are harmful to the rest of the population. A purpose of super-majority rules is to prevent this from happening. We study whether individuals optimally choose sub- or super-majority rules when the rights of minorities...

I present a novel experimental design to measure lying and mistrust as continuous variables on an individual level. My experiment is a sender-receiver game framed as an investment game. It features two players: firstly, an advisor with complete information (i.e., the sender) who is incentivized...

We study theoretically and empirically how monetary incentives and information about others' behavior affects dishonesty. We ran a laboratory experiment with 560 participants inspired by the "observed game" developed by Kajackaite and Gneezy (2017). We find that the extensive (the fraction of...

We conduct a laboratory experiment to explore whether loss aversion applies to social image concerns. First, subjects are ranked publicly in a social image relevant domain, an IQ test, to establish own rank as a within-subject reference point. We then induce an exogenous change in within-subject...

Informed decisions are the cornerstone of a functioning democracy. The goal of this paper is twofold. First, to explore who is good at distinguishing between true and false, and, second, to learn something about mechanisms to debunk false news stories. In an experimental study, subjects were...

We investigate if people exploit moral wiggle room in markets when revelation is stochastic and the revealed information is potentially erroneous. In our laboratory experiment, subjects purchase products associated with co-benefits represented as a contribution to carbon offsets purchased by the...

Many countries grant exemption from legal prosecution under certain conditions, allowing for voluntary disclosures regarding tax evasion. Empirically, tax amnesties appear most successful when accompanied by an increase in enforcement efforts because they help evaders to adjust to the new...

In sequential interactions, both the first mover's intention and the outcome of his choice may influence the second mover's action. While outcomes are typically observable, intentions are more likely to be hidden, leaving potential wiggle room for the second mover when deciding on a...