Why do individuals engage in personally costly, partisan activities that benefit others? If individuals act according to rational self-interest, then partisan activity occurs only when the benefits of that activity exceed its costs. However, laboratory experiments suggest that many people are...

We conduct experiments in which subjects participate in both a game that measures preferences for income equality and a public goods game involving costly punishment. The results indicate that individuals who care about equality are those who are most willing to punish free-riders in public...

Participants in laboratory games are often willing to alter others' incomes at a cost to themselves and this behaviour has the effect of promoting cooperation. What motivates this action is unclear: punishment and reward aimed at promoting cooperation cannot be distinguished from attempts to...

Altruistic punishment is a behaviour in which individuals punish others at a cost to themselves in order to provide a public good. Fehr and Gächter1 present experimental evidence suggesting that negative emotions toward non-cooperators motivate punishment which, in turn, facilitates high levels...

We study an economy subject to recurrent disasters when agents have imprecise information about the frequency and duration of the disasters. Uncertainty about the persistence of states can lead to seemingly pessimistic behavior in bad times and optimistic behavior in good times. In a disaster,...

We exploit regional variations in exposure to heat stress to study if physical climate risk is priced in municipal and corporate bonds as well as in equity markets. We find that local exposure to damages related to heat stress equaling 1% of GDP is associated with municipal bond yield spreads...

Members of various species engage in altruism — i.e. accepting personal costs to benefit others. Here we present an incentivized experiment to test for altruistic behavior among AI agents consisting of large language models developed by the private company OpenAI. Using real incentives for AI...

Insider trading in the credit derivatives market has become a significant concern for regulators and participants. This paper attempts to quantify the problem. Using news reflected in the stock market as a benchmark for public information, we report evidence of significant incremental...