To study the effect of congestion on the fundamental trade-off between diagnostic accuracy and speed, we empirically test the predictions of a formal sequential testing model in a setting where the gathering of additional information can improve diagnostic accuracy, but may also take time and...

Why do people give when asked, but prefer not to be asked, and even take when possible? We introduce a novel analytical framework that allows us to express context dependence and narrow bracketing axiomatically. We then derive the utility representation of distributive preferences additionally...

Households regularly fail to make optimal financial decisions. But what are the underlying reasons for this? Using two conceptually distinct measures of time inconsistency based on bank account transaction data and behavioral measurement experiments, we show that the excessive use of bank...

Anscombe and Aumann (1963) offer a definition of subjective probability in terms of comparisons with objective probabilities. That definition - which has provided the basis for much of the succeeding work on subjective probability - presumes that the subjective probability of an event is...

Ethnic discrimination is ubiquitous, and it has been shown to exert adverse effects on income redistribution. The reason is that a country’s ethnic majority, if richer than the average, may be unwilling to transfer resources to the country’s ethnic minorities if poorer than the average. A...

We provide an experimental test of theories to explain differences in redistribution preferences across countries. We involved participants in standardized situations of redistribution in four Western countries, varying the relevance of self-interest and uncertainty over initial earnings. Demand...