This study investigates the degree to which framing and context influence observed rates of free-riding behavior in a negative externality laboratory experiment. Building on the work of Andreoni (1995a) and Messer et al. (2007) we frame the decision not to contribute to a public fund as...

Intermediaries play an important role in markets with asymmetric information by reducing the search friction and uncertainty for buyers and sellers. However, when a conflict of interest arises, agents may not fully act on behalf of their clients. Using a unique dataset of both housing resale...

How does an epidemic affect individuals' expectations on economic prospects? Do people care more about containing the disease or sustaining normal economic activities during the epidemic? We implement an incentivized longitudinal online survey on economic expectations with randomized controlled...

This paper investigates how transportation networks shape firms' geographic footprint byreducing information asymmetry associated with distant investments. Exploiting the staggeredexpansions of China's passenger high-speed rail (HSR) network, we document that the amountof intercity investment...

The topic of air pollution has drawn considerable attention globally. In this paper, we examine the immediate effect of air pollution on a substantial decision, that is, a housing purchase. By linking housing purchasing behavior with the air quality in Beijing, we document market participants'...

In this paper, we investigate the determinants of household asset portfolios during the COVID-19 outbreak in China. Using an online longitudinal survey and focusing on a broad spectrum of assets, including stocks, gold, wealth management products, and houses, we show that more confirmed COVID-19...

Researchers have discovered systematic cross-regional differences in many fundamental preferences and behaviour. The large heterogeneity in preferences exists not only cross-countries, but also within countries. This paper explores the ancient origins of the intra-national variation in...

Expected utility theory (EUT) is a parsimonious theory that explains behavior under risk and uncertainty. Previous research showed that EUT of wealth is not a satisfactory explanation of risk aversion. We use empirical data from a controlled laboratory experiment to show that EUT of income...