Despite decades of research on heuristics and biases, empirical evidence on the effect of large incentives – as present … in relevant economic decisions – on cognitive biases is scant. This paper tests the effect of incentives on four widely … Reflection Test. In pre-registered laboratory experiments with 1,236 college students in Nairobi, we implement three incentive …

Despite decades of research on heuristics and biases, empirical evidence on the effect of large incentives - as present … in relevant economic decisions - on cognitive biases is scant. This paper tests the effect of incentives on four widely … Reflection Test. In laboratory experiments with 1,236 college students in Nairobi, we implement three incentive levels: no …

(compensation based on relative performance) are less efficient than team-based incentives …

's presence. Monetary incentives reduce the average bias to one-third of its original value. Additionally, the average anchor bias … incentives, feedback for learning effects and a rational strategy of unbiased predictions. We introduce an experimental design … significant anchoring effects. Without monetary incentives, the share of rational predictions drops from 42% to 15% in the anchor …