We propose that the concept of cognitive dissonance contributes to the explanation of the regularity that wages grow faster than productivity. Cognitive dissonance is the tendency of a person to engage in self-justification after a decision. We show that a consequence of this tendency is that...

This paper presents evidence which challenges the view that techniques which are designed to measure the social preferences of subjects can always be accomplished in a nonintrusive manner. We find evidence that such measurements can influence the preferences which they are designed to measure....

We model a game similar to the interaction between an academic advisor and advisee. Like the classic cheap talk setup, an informed player sends information to an uninformed receiver who is to take an action which affects the payoffs of both sender and receiver. However, unlike the classic cheap...