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Credence goods markets suffer from inefficiencies caused by superior information of sellers about the surplus-maximizing quality. While standard theory predicts that equal mark-up prices solve the credence goods problem if customers can verify the quality received, experimental evidence...
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This paper examines behavior in a tournament in which we vary the tournament prize structure and the information available about participants' skill at the task of solving mazes. The number of solved mazes is lowest when payments are independent of performance; higher when a single, large prize is...
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The present book adds to the broad field of investigations concerning what affects and determines human cooperation. It provides new insights into internal and external factors that influence such decisions. Rather than presenting a closed and universal examination, this book should be seen as...
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We investigate how the convexity of a firm’s incentives interacts with worker overconfidence to affect sorting …
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We test whether and, if so, how incentives to promote pro-social behavior affect the extent to which it spills over to … subsequent charitable giving. To do so, we conduct a two-period artefactual field experiment to study repeated donation decisions … effect, which captures the extent to which the spillover effects are affected by the incentives exerted on the previous pro …
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