Previous studies have found evidence of a self-serving bias in bargaining and dispute resolution. We use experimental data to test for this effect in a simulated labor relatonship. We find a consistent discrepancy between employer beliefs and employee actions that can only be attributed to...

Rule learning posits that decision makers, rather than choosing over actions, choose over behavioral rules with different levels of sophistication. Rules are reinforced over time based on their historically observed payoffs in a given game. Past works on rule learning have shown that when...

Erev, Ert, and Roth organized three choice prediction competitions focused on three related choice tasks: one shot decisions from description (decisions under risk), one shot decisions from experience, and repeated decisions from experience. Each competition was based on two experimental...

In a given period, a diversified fund, by virtue of being a weighted average, will perform somewhere in the middle range of its components' respective performances. This means that adaptive investors who look to the past to adjust expectations about future returns will shun diversified funds....

We present a laboratory experiment that measures the effects of group identity--one's perceived membership in social groups--on market transactions in an oligopoly market with a few sellers and buyers. We artificially induce group identity using art preferences and college majors in different...

This paper develops and tests a model of how recall of information from past decisions affects subsequent related decisions. A boundedly rational individual has to determine her willingness to pay for a good that she previously considered purchasing at a given price, or provide valuations for a...

Internet auctions are common in nearly all consumer categories. Hence, it is not surprising that a great deal of research has emerged on the topic in recent years. New design and format considerations and a wealth of available data from various platforms provide new questions and promising...

An important issue in the study of asset market bubbles is the extent to which traders are influenced by their perceived performance relative to other traders. Extant research on laboratory asset market bubbles has generally kept performance information private, effectively excluding such...

In open source software development, users rather than paid developers engage in innovation and development without the direct involvement of manufacturers. This paradigm cannot be explained by the two traditional models of innovation, the private investment model and the collective action model...