The paper presents the results of a novel experiment testing the effects of environment complexity on strategic behavior, using a centipede game. Behavior in the centipede game has been explained either by appealing to failures of backward induction or by calling for preferences that induce...

This paper examines whether the degree of confidence and overconfidence in one's ability is determined biologically. In particular, we study whether fetal testosterone exposure correlates with an incentive-compatible measure of confidence within an experimental setting. We find that men (rather...

Support for redistribution depends on whether inequality stems from differences in performance or luck, but different sources of luck may impact redistribution differentially. We elicit redistribution decisions from a U.S.-representative sample who observe worker earnings and whether luck...

To incentivize workers and boost performance, firms often offer monetary bonuses for the achievement of production goals. Such bonuses appeal to two types of motivations of the worker. On the one hand, the existence of a goal, on its own, triggers an intrinsic motivation associated with the...

This paper combines laboratory experiments with a unique feature of the city of Bogotá to uncover the relationship between generosity and wealth. Bogotá is divided by law into six socio-economic strata which are close proxies of household wealth and income. We recruit subjects from different...

We study whether poverty can induce affective states that decrease productivity. In a controlled laboratory setting, we find that subjects randomly assigned to a treatment, in which they view a video featuring individuals that live in extreme poverty, exhibit lower subsequent productivity...

Study abroad migration is the fastest growing international migration flow. However, the college completion rates of students from low-income countries are often modest in OECD countries, raising the hypothesis that these migrants are poorly informed about the costs and benefits of their...

The aim of the paper was to analyze some behavioral effects, especially the effect of “hidden” tax, the “preference of progressivity” effect and some kind of “preference of short period incidence” effects of citizen. The effects predict the citizens will prefer hidden taxes to direct...

Motivation represents a foundation corestone on which analyses in a number of the humanities and social sciences are built. For a long time, economists have seen motivation as connected with the act of giving, trying to interpret it in the context of the neoclassical economics assumptions. On...

The random incentive system (RIS) is a standard incentive scheme used to elicit preferences in economic experiments. However, it has been speculated that RIS may not be incentive compatible when participants are concerned about ambiguity, i.e., that the choices observed under RIS do not reflect...