This paper studies lying in a simple framework. An agent first randomly picks a number from a known distribution. She can then claim to have observed any number from the set, receiving a monetary payoff based only on her report. Consistent with previous findings, our participants do not...

This chapter provides a framework for how incentives affect behavior change. Economic theory is built on the premise that incentives matter, but empirical evidence shows the effect of incentives on behavior is more complicated than predicted by the basic law of demand. Our framework highlights...

The Holt and Laury (2002) mechanism (HL) is the most widely-used method for eliciting risk preferences in economics. Participants typically make ten decisions with different variance options, with one of these choices randomly-chosen for actual payoff. For this mechanism to provide an accurate...