We test the hypothesis that "genuine" or "convincing" smiling is a costly signal that has evolved to induce cooperation in situations requiring mutual trust. Potential trustees in a trust game made video clips for viewing by potential trusters before the latter decided whether to send them...

We present an experimental study on how people take risk with other people’s money. We use three different elicitation methods, and study how each subject makes decisions both on behalf of own money and on behalf of another individual’s money. We find that a majority of subjects make...

This paper experimentally investigates how emotions are associated with option prices and risk perception. Using a binary lottery, we find evidence that the emotion 'surprise' plays a significant role in the negative correlation between lottery returns and estimates of the price of a put option....

Do people contribute to CO2 abatements even when these contributions are completely crowded out by a third party? This study reports from an experimental test of contributions to carbon abatements when the contributions are completely crowded out by the experimenter. Contributions are determined...

We study how individuals adjust their judgment of fairness and unfairness when they are in the position of spectators before and after making real decisions, and how this adjustment depends on the actions they take in the game. We find that norms that appear universal instead take into account...

It has been suggested that the adoption of mandatory labeling for genetically engineered food might send a signal to consumers that foods produced with biotechnology are unsafe or should be avoided. To date, however, there is little empirical evidence to substantiate this claim. This paper...

We investigate how different forms of scrutiny affect dishonesty, using Gneezy's (2005) deception game. We add a third player whose interests are aligned with those of the sender. We find that lying behavior is not sensitive to revealing the sender's identity to the observer. The option for...

We examine the effect of single-sex classes on the pass rates, grades, and course choices of students in a coeducational university. We randomly assign students to all-female, all-male, and coed classes and, therefore, get around the selection issues present in other studies on single-sex...