Systematic differences in the attitudes of men and women toward risk is well established and has been shown to contribute substantially to gender-specific outcomes within labour markets and goods markets. Despite these important implications, surprisingly little is known about the source of...

Anger is an important driver in shaping economic activities, particularly in instances that involve strategic interactions between individuals. Here we test whether anger impairs the capacity to think strategically, and we analyze the implications of our result on bargaining and cooperation...

Money attitudes or an individual's feelings towards money is an important factor in determining their financial behavior and financial wellbeing. A large section of the Indian population faces financial stress due to low incomes and a lack of financial education. It is important to understand...

This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how "direct" performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over the...

The dynamics of cryptocurrency prices and on-line search about them during the 2016-2018 period reveals a direct/positive mutual feedback relationship during the bubble formation phase that weakened considerably when the prices started to fall. This behavior is prevalent for Bitcoin and...

Behaviorally informed policies of interventions in choice architecture are growingly used to nudge people towards socially desirable behaviors. While consumers are usually the target of those nudges, businesses often serve as “nudging agents" on behalf of government regulation, or may be the...

This paper investigates risk preference at older ages in 14 European countries. Older individuals report greater risk aversion. Using the longitudinal nature of the data we are able to show this relationship between risk preferences and age is not due to cohort effects or selective mortality. We...

This paper explores how a relational contract establishes a norm of reciprocity and how such a norm shapes the provision of informal incentives. Developing a model of a long-term employment relationship, I show that generous upfront wages that activate the norm of reciprocity are more important...

Escalation is a key characteristic of many consumption behaviors that has not received the theoretical attention it deserves. The aim of this paper is to propose both a definition and a theoretical treatment of escalation in consumption. We shall define escalation as the attempt to obtain...

Inter-temporal decisions involves assigning values to various payoffs occurring at different temporal distances. Past research has used different approaches to study these decisions made by humans and animals. For instance, considering that people discount future payoffs at a constant rate...