We use a simple version of the Psychological Expected Utility Model (Caplin and Leahy, QJE, 2001) to analyze the optimal choice of information accuracy by an individual who is concerned with anticipatory feeling. The individual faces the following trade-off: on the one hand information may lead...

We examine whether financial capability has impacts on psychological health independent of income and financial resources more generally using a nationally representative survey. British Household Panel Survey data are used to construct a measure of financial capability, which we relate to...

Psychological game theory can provide rational-choice-based framing effects; frames influence beliefs, beliefs influence motivations. We explain this theoretically and explore empirical relevance experimentally. In a 2×2 design of one-shot public good games we show that frames affect...

We conduct a laboratory experiment to investigate the impact of institutions and institutional choice on truth-telling and trust in sender-receiver games. We find that in an institution with sanctioning opportunities, receivers sanction predominantly after having trusted lies. Individuals who...

Vertrauen hat Konjunktur. Seit etlichen Jahren ist es en vogue, Vertrauen einzufordern. - Politiker fordern das "Vertrauen" der Wähler und konstatieren konsterniert, dass sie das Vertrauen der Wähler verloren haben (Der Spiegel Nr. 26; 2004: 24, Müntefering: 'Uns ist das Vertrauen der Menschen...

Die Akzeptanz der Steuerpolitik hängt davon ab, ob die Steuerzahler das Steuersystem als gerecht empfinden. Dabei werden objektiv identische Fakten ganz unterschiedlich wahrgenommen, je nachdem wie sie dargestellt werden. Welche Faktoren spielen bei der Wahrnehmung eine Rolle?