We conducted experiments within a firm to measure the risk preferences of workers who face substantial daily income risk. We find that these workers are significantly more risk-tolerant than individuals from the broader population. This is consistent with sorting: risk-tolerant workers are...

We estimate structural models of guilt aversion to measure the population level of willingness to pay (WTP) to avoid feeling guilt by letting down another player. We compare estimates of WTP under the assumption that higher-order beliefs are in equilibrium (i.e. consistent with the choice...

Abstract We specify and estimate an econometric model which separately identifies the effects of distributional preferences and penalizing unfair proposer behavior ("perceived intentions") on responder decisions in the ultimatum game. We allow the effects of perceived intentions to depend, among...

We propose a flexible method to approximate the subjective cumulative distribution function of an economic agent about the future realization of a continuous random variable. The method can closely approximate a wide variety of distributions while maintaining weak assumptions on the shape of...

The, often observed, positive correlation between incentive intensity and risk has been explained in two ways: the presence of transaction costs as determinants of contracts and the sorting of risk-tolerant individuals into firms using high-intensity incentive contracts. The empirical importance...

We experimentally disentangle the effect of information dissemination from the effect of the time horizon on the investment behavior of a myopically loss averse investor. Our findings show that varying the information condition only suffices to induce behavior that is in line with the hypothesis...