Managerial turnover induces an information loss regarding managers' knowledge about subordinates' abilities that might increase subordinates' incentives to exhibit effort to impress the new manager. To identify how this affects short‐term performance, we analyze within‐season coach turnovers...

Competitions often serve to identify the most capable individual or increase overall effort in corporations and sports. Whether to provide individuals with (ranking) information in such a context is an intriguing question. We investigate individuals' competitive behavior under different degrees...

Microinsurance adoption in developing countries is low, despite its potential to foster economic growth. Recent research is not able to explain the low demand within the neoclassical framework. I contribute to this stream of research by proposing rational as well as boundedly rational...

Microinsurance adoption in developing countries is low, despite its potential to foster economic growth. Recent research is not able to explain the low take-up rates within the neoclassical framework. I contribute to this stream of research by proposing rational as well as boundedly rational...

In a neoclassical framework risk averse agents ask for full insurance coverage if the premium is actuarially fair. Recent empirical observations of the demand for index-based weather insurance in developing countries reveal the opposite: the more risk averse farmers are, the less they buy...

This work analyzes if reference dependence and loss aversion can explain the puzzling low adoption rates of rainfall index insurance. We present a model that predicts the impact of loss aversion on index insurance demand to vary with different levels of insurance understanding. Index insurance...