Willingness to take risk depends on whether the risk affects others as well as oneself and on how the risk affects one´s position vis-á-vis others. Taking a bet can improve one´s position relative to others or threaten it. We present an experiment that explores individual attitudes to...

We investigate the decision of experimental subjects to incur the risk of revealing personal private information to other participants. We do so by using a novel method to generate personal information that reliably induces privacy concerns in the laboratory. We show that individual decisions to...

Recent evidence suggests that default based nudges i.e. alterations in the decisional context, can have large effects on decision making and can be used as policy interventions to improve individual and public welfare. This paper presents the results of a controlled experiment (N = 988),...

We study the coexistence of strategies in the indirect reciprocity game where agents have access to second-order information. We fully characterize the evolutionary stable equilibria and analyze their comparative statics with respect to the cost-benefit ratio (CBR). There are indeed only two...

Purpose: Many online transactions and digital services depend on consumers’ willingness to take privacy risks, such as when shopping online, joining social networks, using online banking or interacting with e-health platforms. Their decisions depend on not only how much they would suffer if...

Bloggers devote significant time not only producing content for others to read, watch or listen to, but also paying attention to and engaging in interactions with other bloggers. We hope to throw light not only on the factors that gain bloggers significant readership and lively interactions with...

It has been argued that cognitively constrained consumers respond sub-optimally to complex decision problems, and that firms can exploit these limitations by introducing spurious complexity into tariff structures, weakening price competition. We model a countervailing force. Restricting one's...

We refine the understanding of individual preferences across social lotteries, whereby the payoffs of a pair of subjects are exposed to random shocks. We find that aggregate behavior is ex-post and ex-ante inequality averse, but also that there is a wide variety of individual preferences and...

We investigate the influence of ethical feedback on decision-makers' behavior, focusing on the role of emotions in mediating this relationship. We examine how emotions generated by ethical feedback impact subsequent decisions in a laboratory setting with incentivized tasks. We distinguish...

Recent evidence suggests that nudges, i.e. alterations in the decisional context, can have large effects on decisions and can improve individual and public welfare. This paper presents the results of a controlled experiment that was designed to evaluate not only the effectiveness of a default...