Relative performance feedback (RPF) has often been shown to improve effort and performance in the workplace and educational settings. Yet, many studies also document substantial negative effects of RPF, in particular for low-achievers. We study a novel type of RPF designed to overcome these...

Some consumption opportunities, e.g. medical treatments, are both indivisible and only valuable in particular states of nature. The existence of such state-dependent indivisible consumption opportunities influences a person's risk attitudes. In general, people are not risk averse anymore even if...