The paper introduces the concept of adjustment utility, that is, referencedependent utility from expectations. It …

Previous experimental investigations have shown that expectations are not perfectly rational due to bias. Traditional … adaptive models, however, in many cases do not perfectly describe the formation of expectations either. This paper makes two … contributions to the experimental literature on the formation of expectations: First, we investigate whether subjects who have more …

The paper introduces the concept of adjustment utility, that is, reference-dependent utility from expectations. It …

Previous experimental investigations have shown that expectations are not perfectly rational due to bias. Traditional … adaptive models, however, in many cases do not perfectly describe the formation of expectations either. This paper makes two … contributions to the experimental literature on the formation of expectations: First, we investigate whether subjects who have more …

Recent literature has shown that lying behavior in the laboratory can well be explained by a combination of lying costs … and reputation concerns. We extend the literature on lying behavior to strategic interactions. As reciprocal behavior is …’s information on the first movers lying behavior. This allows us to derive predictions on the second mover’s behavior which we test …

(treatment in which face-to-face communication triggers psychological effects such as greater lying aversion) to much (treatment …