We examine whether compliance with the law is associated with prosocial behavior. We test whether people who comply with parking rules are more likely to reply to a survey than people who did not comply with parking rules. We find that parking rule followers have significantly higher response...

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...

This paper focuses on belief distortion in the context of lying decisions. We employ a twostage variant of the "dice under the cup" paradigm, in which subjects' beliefs are elicited in stage 1 before performing the dice task in stage 2. In stage 1, we elicit the subjects' beliefs about (i)...