Previous research has shown that prior outcomes affect choices in an inconsistent way. As a consequence, a prior loss decreased risk seeking among participants at the end of a betting sequence, which is a time when people are believed to be more risk seeking

The hypothesis is proposed that due to shallow information processing families frequently use an equal-division social decision heuristic in allocating resources. In Study 1 a survey was conducted of a nationwide sample (n=446) and a smaller student sample (n=50) consisting of married or...

This paper uses agent-based simulation to analyze how financial markets are affected by market participants with convex incentives, e.g. option-like compensation. We document that convex incentives are associated with (i) higher prices, (ii) larger variations of prices, and (iii) larger bid-ask...

This paper uses agent-based simulation to analyze how financial markets are affected by market participants with convex incentives, e.g. option-like compensation. We document that convex incentives are associated with (i) higher prices, (ii) larger variations of prices, and (iii) larger bid-ask...