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This paper analyses the impact of good vs. bad ratings during the first stage of the decision-making process when booking a hotel. This study tested the interaction between numerical ratings given to a product or service and the number of verbal reviews it has received while controlling subject susceptibility to interpersonal influence. The study conducted a full factorial between subjects design of 2 levels of ratings (good vs. bad) x 2 levels of reviews (high vs. low) in a decision-controlled setting. Results suggest an asymmetric interaction between numerical ratings and reviews: When the rating is good, the trust in the rating depends on the number of reviews, but conversely, if the rating is bad, the number of reviews has no effect on how trustworthy the rating is. Academic and managerial implications of this study and scope for future research have also been discussed., https://www.sciencedirect.com/science/article/pii/S0261517717302376, Unidad Dptal. de Organización de Empresas y Marketing, Fac. de Ciencias de la Información, TRUE, pub

A novel laboratory experiment is used to show that mismatching between task preferences and task assignment strongly undermines worker performance and leads to free riding in teams. Unlike prior experiments using real effort tasks, task preferences are elicited from all workers. Under team-based remuneration (revenue sharing), free riding is significant, but this effect is largely driven by those working on undesired tasks. Workers’ endogenous sorting into tasks improves productivity as it mitigates task mismatching although workers’ task selection per se has only small effects on work performance and effort provisions beyond the positive sorting effects., A novel laboratory experiment is used to show that mismatching between task preferences and task assignment undermines worker productivity and leads to free riding in teams. We elicit task preferences from all workers. Workers’ endogenous sorting into tasks significantly improves productivity under individual-based remuneration (performance pay). Under team-based remuneration (revenue sharing), free riding is significant, but almost exclusively among those working on undesired tasks. Task selection by majority voting in teams alleviates free riding, but only partly so, because some workers are still assigned to undesired tasks. Our findings have broad implications for research using real effort tasks.

Risk and time are transversal elements in the economic analysis, over which specific predefined assumptions are determined. On the contrary, extensive experimental evidence shows that these preferences are not exogenous, and their heterogeneity deserves to be determined in the modelling of behaviour. This paper presents evidence regarding the determinants of individual preferences in both domains: risk and time, in a context of developing countries. The analysis involves experimental mechanisms to elicit preferences with psychological constructs and self-reported measures., El riesgo y el tiempo constituyen elementos centrales en el análisis económico, sobre los cuales típicamente se establecen supuestos predefinidos. Amplia evidencia experimental demuestra que estas preferencias no son exógenas, de modo que su heterogeneidad merece ser considerada en la modelización del comportamiento. Este artículo presenta evidencia con respecto a los factores determinantes y el grado de correlación de las preferencias individuales en ambos dominios: el riesgo y el tiempo, en un contexto de países en vías de desarrollo. El análisis involucra mecanismos experimentales de elicitación de preferencias, con constructos psicológicos y medidas autorreportadas., O risco e o tempo são elementos centrais na análise econômica, sobre a qual normalmente são feitas suposições predefinidas. Extensas evidências experimentais mostram que essas preferências não são exógenas, portanto, sua heterogeneidade merece ser considerada na modelagem comportamental. Este artigo apresenta evidências sobre os fatores determinantes e o grau de correlação das preferências individuais em ambos os domínios: risco e tempo, no contexto de um país em desenvolvimento. A análise envolve mecanismos experimentais de elicitação de preferências, com construtos psicológicos e medidas autorreferidas.

We investigate a mechanism that facilitates the provision of public goods in a network formation game. We show how competition for status encourages a core player to realize efficiency gains for the entire group. In a laboratory experiment we systematically examine the effects of group size and exogenously monetarized status rents. The experimental results provide very clear support for the concept of challenge-freeness, a refinement that predicts when a repeated game equilibrium will be played, and if so which one. Two control treatments allow us to reject the possibility that these observations are driven by social preferences, independently of the competition for status

We investigate a mechanism that facilitates the provision of public goods in a network formation game. We show how competition for status encourages a core player to realize efficiency gains for the entire group. In a laboratory experiment we systematically examine the effects of group size and exogenously monetarized status rents. The experimental results provide very clear support for the concept of challenge-freeness, a refinement that predicts when a repeated game equilibrium will be played, and if so which one. Two control treatments allow us to reject the possibility that these observations are driven by social preferences, independently of the competition for status

We experimentally analyze the effect of endogenous group formation on the type of sanctioning institutions emerging in a society. We allocate subjects to one of two groups. Subjects play a repeated public goods game and vote on the sanctioning system (formal or informal) to be implemented in their group. We compare this environment to one in which subjects are allowed to (i) vote on the sanctioning system and (ii) move between groups. We find that the possibility of moving between groups leads to a larger proportion of subjects voting for formal sanctions. This result is mainly driven by subjects in groups with relatively high initial levels of contribution to the public good, who are more likely to vote for informal sanctions when groups are closed than when they are open., We experimentally analyze the effect of endogenous group formation on the type of sanctioning institutions emerging in a society. We allocate subjects to one of two groups. Subjects play a repeated public goods game and vote on the sanctioning system (formal or informal) to be implemented in their group. We compare this environment to one in which subjects are allowed to (i) vote on the sanctioning system and (ii) move between groups. We find that the possibility of moving between groups leads to a larger proportion of subjects voting for formal sanctions. This result is mainly driven by subjects in groups with relatively high initial levels of contribution to the public good, who are more likely to vote for informal sanctions when groups are closed than when they are open.

This paper analyzes social norms in corruption by exploring whether engagement in bribery induces costly third-party punishment. By introducing third-party punishment in a bribery experiment we disentangle social norms from other non-normative motives ̶ such as retaliation, negative reciprocity ̶ maintained merely by parties involved in corruption. We manipulate two main characteristics of bribery: the private benefits gained by corrupt actors, and the negative externality generated by bribery on passive members of society. We find that third parties punish bribers more often than the bribed, but to a lesser extent. Greater private benefits induce third parties to punish more, whereas greater negative externalities have no impact on punishment choices. We unveil the role of emphatic anger as a microdeterminant of third-party punishment. We find gender differences in punishment behavior, with females being more willing to punish the bribed than males, but to a lesser amount.

We investigate how prescriptive and descriptive norms affect the development of corruption over time. In particular, we are interested in whether the extent of corruption converges. If it does, we study how the level at which it converges depends on the prescriptive norms in the environment in which it takes place and on the information individuals have about others’ corrupt choices, that is, on descriptive norms. In a laboratory experiment implemented in Italy, China and the Netherlands, a Gneezy-type corruption task is used, with a real-effort task. We use a Krupka-Weber elicitation method to obtain information about existing prescriptive norms with respect to corrupt behavior. To induce natural variation in descriptive norms, we vary the type of information about others’ choices. Our results show that corruption is highly contagious everywhere, that is, descriptive norms affect choices. Nevertheless, differences in the effects of descriptive norms are evident across countries. Prescriptive norms concerning bribers’ and judges’ behaviors are observed to differ across the considered subject pools. While in China and the Netherlands it is highly socially inappropriate to bribe and, if you are a decision maker, to treat unfavorably people with high efforts and low bribes, in Italy the norms are the opposite.

This paper analyzes social norms in corruption by exploring whether engagement in bribery induces costly third-party punishment. By introducing third-party punishment in a bribery experiment we disentangle social norms from other non-normative motives ̶ such as retaliation, negative reciprocity ̶ maintained merely by parties involved in corruption. We manipulate two main characteristics of bribery: the private benefits gained by corrupt actors, and the negative externality generated by bribery on passive members of society. We find that third parties punish bribers more often than the bribed, but to a lesser extent. Greater private benefits induce third parties to punish more, whereas greater negative externalities have no impact on punishment choices. We unveil the role of emphatic anger as a microdeterminant of third-party punishment. We find gender differences in punishment behavior, with females being more willing to punish the bribed than males, but to a lesser amount.

We investigate how prescriptive and descriptive norms affect the development of corruption over time. In particular, we are interested in whether the extent of corruption converges. If it does, we study how the level at which it converges depends on the prescriptive norms in the environment in which it takes place and on the information individuals have about others’ corrupt choices, that is, on descriptive norms. In a laboratory experiment implemented in Italy, China and the Netherlands, a Gneezy-type corruption task is used, with a real-effort task. We use a Krupka-Weber elicitation method to obtain information about existing prescriptive norms with respect to corrupt behavior. To induce natural variation in descriptive norms, we vary the type of information about others’ choices. Our results show that corruption is highly contagious everywhere, that is, descriptive norms affect choices. Nevertheless, differences in the effects of descriptive norms are evident across countries. Prescriptive norms concerning bribers’ and judges’ behaviors are observed to differ across the considered subject pools. While in China and the Netherlands it is highly socially inappropriate to bribe and, if you are a decision maker, to treat unfavorably people with high efforts and low bribes, in Italy the norms are the opposite.

This paper analyzes social norms in corruption by exploring whether engagement in bribery induces costly third-party punishment. By introducing third-party punishment in a bribery experiment we disentangle social norms from other non-normative motives ̶ such as retaliation, negative reciprocity ̶ maintained merely by parties involved in corruption. We manipulate two main characteristics of bribery: the private benefits gained by corrupt actors, and the negative externality generated by bribery on passive members of society. We find that third parties punish bribers more often than the bribed, but to a lesser extent. Greater private benefits induce third parties to punish more, whereas greater negative externalities have no impact on punishment choices. We unveil the role of emphatic anger as a microdeterminant of third-party punishment. We find gender differences in punishment behavior, with females being more willing to punish the bribed than males, but to a lesser amount.

We investigate how prescriptive and descriptive norms affect the development of corruption over time. In particular, we are interested in whether the extent of corruption converges. If it does, we study how the level at which it converges depends on the prescriptive norms in the environment in which it takes place and on the information individuals have about others’ corrupt choices, that is, on descriptive norms. In a laboratory experiment implemented in Italy, China and the Netherlands, a Gneezy-type corruption task is used, with a real-effort task. We use a Krupka-Weber elicitation method to obtain information about existing prescriptive norms with respect to corrupt behavior. To induce natural variation in descriptive norms, we vary the type of information about others’ choices. Our results show that corruption is highly contagious everywhere, that is, descriptive norms affect choices. Nevertheless, differences in the effects of descriptive norms are evident across countries. Prescriptive norms concerning bribers’ and judges’ behaviors are observed to differ across the considered subject pools. While in China and the Netherlands it is highly socially inappropriate to bribe and, if you are a decision maker, to treat unfavorably people with high efforts and low bribes, in Italy the norms are the opposite.

This paper analyzes social norms in corruption by exploring whether engagement in bribery induces costly third-party punishment. By introducing third-party punishment in a bribery experiment we disentangle social norms from other non-normative motives ̶ such as retaliation, negative reciprocity ̶ maintained merely by parties involved in corruption. We manipulate two main characteristics of bribery: the private benefits gained by corrupt actors, and the negative externality generated by bribery on passive members of society. We find that third parties punish bribers more often than the bribed, but to a lesser extent. Greater private benefits induce third parties to punish more, whereas greater negative externalities have no impact on punishment choices. We unveil the role of emphatic anger as a microdeterminant of third-party punishment. We find gender differences in punishment behavior, with females being more willing to punish the bribed than males, but to a lesser amount.

We investigate how prescriptive and descriptive norms affect the development of corruption over time. In particular, we are interested in whether the extent of corruption converges. If it does, we study how the level at which it converges depends on the prescriptive norms in the environment in which it takes place and on the information individuals have about others’ corrupt choices, that is, on descriptive norms. In a laboratory experiment implemented in Italy, China and the Netherlands, a Gneezy-type corruption task is used, with a real-effort task. We use a Krupka-Weber elicitation method to obtain information about existing prescriptive norms with respect to corrupt behavior. To induce natural variation in descriptive norms, we vary the type of information about others’ choices. Our results show that corruption is highly contagious everywhere, that is, descriptive norms affect choices. Nevertheless, differences in the effects of descriptive norms are evident across countries. Prescriptive norms concerning bribers’ and judges’ behaviors are observed to differ across the considered subject pools. While in China and the Netherlands it is highly socially inappropriate to bribe and, if you are a decision maker, to treat unfavorably people with high efforts and low bribes, in Italy the norms are the opposite.

This paper studies lying. An agent randomly picks a number from a known distribution. She can then report any number and receive a monetary payoff based only on her report. The paper presents a model of lying costs that generates hypotheses regarding behavior. In an experiment, we find that the highest fraction of lies is from reporting the maximal outcome, but some participants do not make the maximal lie. More participants lie partially when the experimenter cannot observe their outcomes than when the experimenter can verify the observed outcome. Partial lying increases when the prior probability of the highest outcome decreases. (JEL C91, D12, D90, Z13)

This paper presents evidence on the role of the endowment effect in shaping the risk-taking behavior of entrepreneurs, and how the potential of losing their firms lead them to take higher risks. This study uses an experimental design with 466 entrepreneurs in Cali, Colombia. Results show that entrepreneurs are more likely to accept riskier bets when those are related to the possession of their companies than in non-framed lotteries. The data shows that the existence of the endowment effect increases the certainty equivalent of a lottery, for the median entrepreneur, by 36.5%. This could explain why many entrepreneurs prefer to continue operating their underperforming firms, as well as why many entrepreneurs overvalue their firms during investment processes. This paper presents an alternate view on the drivers behind entrepreneurs’ risk-taking behavior and opens a door for future research on the role of biases on entrepreneurs’ decision-making processes., Resumen: Este documento presenta evidencia acerca del papel del efecto de dotación en el comportamiento de riesgo de los emprendedores, y cómo el potencial de perder sus empresas los lleva a asumir mayores riesgos. Este estudio utiliza un diseño experimental con 466 emprendedores en Cali, Colombia. Los resultados muestran que los emprendedores son más propensos a aceptar apuestas más arriesgadas cuando estas están relacionadas con la posesión de sus compañías, que en loterías no enmarcadas en este contexto. Los datos muestran que la existencia del efecto de dotación aumenta el equivalente de certeza de una lotería, para el emprendedor medio, en 36,5%. Esto podría explicar por qué muchos empresarios prefieren continuar operando sus empresas de bajo rendimiento, y también por qué muchos emprendedores sobrevaloran sus empresas durante los procesos de inversión. Este documento presenta una visión alternativa respecto de los factores detrás del comportamiento de riesgo de los emprendedores, y abre la puerta a futuras investigaciones del papel de los sesgos en los procesos de toma de decisiones empresariales.

This paper presents evidence on the role of the endowment effect in shaping the risk-taking behavior of entrepreneurs, and how the potential of losing their firms lead them to take higher risks. This study uses an experimental design with 466 entrepreneurs in Cali, Colombia. Results show that entrepreneurs are more likely to accept riskier bets when those are related to the possession of their companies than in non-framed lotteries. The data shows that the existence of the endowment effect increases the certainty equivalent of a lottery, for the median entrepreneur, by 36.5%. This could explain why many entrepreneurs prefer to continue operating their underperforming firms, as well as why many entrepreneurs overvalue their firms during investment processes. This paper presents an alternate view on the drivers behind entrepreneurs’ risk-taking behavior and opens a door for future research on the role of biases on entrepreneurs’ decision-making processes., Resumen: Este documento presenta evidencia acerca del papel del efecto de dotación en el comportamiento de riesgo de los emprendedores, y cómo el potencial de perder sus empresas los lleva a asumir mayores riesgos. Este estudio utiliza un diseño experimental con 466 emprendedores en Cali, Colombia. Los resultados muestran que los emprendedores son más propensos a aceptar apuestas más arriesgadas cuando estas están relacionadas con la posesión de sus compañías, que en loterías no enmarcadas en este contexto. Los datos muestran que la existencia del efecto de dotación aumenta el equivalente de certeza de una lotería, para el emprendedor medio, en 36,5%. Esto podría explicar por qué muchos empresarios prefieren continuar operando sus empresas de bajo rendimiento, y también por qué muchos emprendedores sobrevaloran sus empresas durante los procesos de inversión. Este documento presenta una visión alternativa respecto de los factores detrás del comportamiento de riesgo de los emprendedores, y abre la puerta a futuras investigaciones del papel de los sesgos en los procesos de toma de decisiones empresariales.

We examine the predictive validity of survey-measured left-right politicalideology by testing whether this measure is able to explain observed choices regarding equality versus efficiency. We study this in a real-effort distributionexperiment, in which decision-makers allocate money equally or efficiently. Wedistinguish between decision-makers that receive ‘manna-from-heaven’ and decision-makers that have earned the money to be distributed in a real effort task. We find that, conditional on entitlement concerns, self-reported right-wing ideology significantly predicts preferences for efficiency. Reported left-wing ideology does not have predictive value in explaining preferences for equality., info:eu-repo/semantics/published

People may or not know the impression they convey to others (meta-accuracy). However, little research has addressed to what extent meta-accuracy affects social outcomes such as hireability (recruiter’s intention to hire). Three studies were conducted to test whether people who knew the impression they conveyed are the ones who are more likely to get hired. Results of polynomial regression and responses surface analyses showed that meta-accuracy was related to hireability, whether meta-accuracy concerns skills during an interview (Study 1, N = 49, and Study 2, N = 127) or traits and skills on a résumé (Study 3, N = 135). The pattern of results takes three forms. First, the lack of meta-accuracy, as the simple gap between metaperception and other’s perception, reduces hireability. Second, hireability is higher when meta- and other’s perception are favorable rather than unfavorable, while staying in agreement. Third, hireability is higher for applicants underestimating the extent to which a recruiter would perceive favorably their traits and/or skills than for overestimators. These results suggest that the best chance to get hired does not rely only on good impressions but also on knowing, or at least on underestimating, the impressions made upon others., info:eu-repo/semantics/published

This paper studies lying. An agent randomly picks a number from a known distribution. She can then report any number and receive a monetary payoff based only on her report. The paper presents a model of lying costs that generates hypotheses regarding behavior. In an experiment, we find that the highest fraction of lies is from reporting the maximal outcome, but some participants do not make the maximal lie. More participants lie partially when the experimenter cannot observe their outcomes than when the experimenter can verify the observed outcome. Partial lying increases when the prior probability of the highest outcome decreases. (JEL C91, D12, D90, Z13)

We test for the construct validity of the cognitive reflection test (CRT) by eliciting response times. We find that incorrect answers to the CRT are quicker than correct answers. At the individual level, we classify subjects into impulsive and reflective, depending on whether they choose the incorrect intuitive answer or the correct answer the majority of the time. We show that impulsive subjects complete the test quicker than reflective subjects.

In this experiment, voters select a leader who can either act in the public interest, i.e. make efficient and equitable policy choices, or act in a corrupt way, i.e. use public funds for private gain. Voters can observe candidates’ pro-social behavior and their score in a cognitive ability test prior to the election, and this fact is known to candidates. Therefore, self-interested candidates have incentives to act in a pro-social manner, i.e. to pretend to be public-spirited leaders. We find that both truly pro-social and egoistic leaders co-exist, but that political selection is ineffective in choosing public-spirited leaders. The main reason is that egoistic candidates strategically pretend to be pro-social to increase their chances of winning the election., In this experiment, voters select a leader who can either act in the public interest, i.e. make efficient and equitable policy choices, or act in a corrupt way, i.e. use public funds for private gain. Voters can observe candidates’ pro-social behavior and their score in a cognitive ability test prior to the election, and this fact is known to candidates. Therefore, self-interested candidates have incentives to act in a pro-social manner, i.e. to pretend to be public-spirited leaders. We find that both truly pro-social and egoistic leaders co-exist, but that political selection is ineffective in choosing public-spirited leaders. The main reason is that egoistic candidates strategically pretend to be pro-social to increase their chances of winning the election.

We compare three approaches to test for guilt aversion in two economic experiments. The first approach elicits second-order beliefs using self-reports. The second approach discloses first-order beliefs of matched players to decision makers, which are taken as exogenous second-order beliefs of decision makers. The third approach lets decision makers make choices conditional on a sequence of possible first-order beliefs of matched players. We find that the first and third approach generate similar results, both qualitatively and quantitatively. The second approach, however, generates significantly higher levels of ‘kindness’ for low levels of beliefs: at a second-order belief of zero, the probability of choosing the ‘kind’ action is between 43 and 65 percentage points higher than with the other approaches.

This study investigates the impact of a public officials' fairness considerations towards citizens in a petty corruption situation. Other-regarding preferences, and, more particularly, fairness concerns are widely acknowledged as crucial elements of individual economic decision-making. In petty corruption contexts, public officials are to a large extent aware of differences between citizens. Here, we experimentally investigate how fairness considerations may impact on corrupt behaviour. Our novel bribery game reveals that bribes are less frequently accepted when bribers are unequal in terms of endowments. These results suggest that fairness considerations can inflluence corrupt behaviour., info:eu-repo/semantics/published

We examine characteristics and correlates of households in the United States that are most likely to have children at risk of inadequate nutrition - those that report very low food security (VLFS) among their children. Using 11 years of the Current Population Survey, plus data from the National Health and Nutrition Examination Survey (NHANES), we describe these households in great detail with the goal of trying to understand how these households differ from households without such severe food insecurity. While household income certainly plays an important role in determining VLFS among children, we find that even after flexibly controlling for income-to-poverty rates some household characteristics and patterns of program participation have important additional explanatory power. Finally, our examination of the NHANES data suggests an important role for both mental and physical health of adults in the household in determining the food security status of children.

Los estudios experimentales de sobornos investigan los factores que modulan los comportamientos vinculados a estas situaciones de corrupción. Para que capten conductas análogas a la realidad, es necesario que representen de manera apropiada las normas sociales que se ven transgredidas cuando hay corrupción. En esta revisión presentamos críticamente tres técnicas para medir o generar normas sociales en experimentos económicos: el efecto de marco, la estimación de normas mediante un juego de coordinación y el castigo de terceros. Discutimos cómo la complementariedad y el mejoramiento de estas técnicas pueden contribuir a la validez externa de los estudios experimentales de corrupción.

Los estudios experimentales de sobornos investigan los factores que modulan los comportamientos vinculados a estas situaciones de corrupción. Para que capten conductas análogas a la realidad, es necesario que representen de manera apropiada las normas sociales que se ven transgredidas cuando hay corrupción. En esta revisión presentamos críticamente tres técnicas para medir o generar normas sociales en experimentos económicos: el efecto de marco, la estimación de normas mediante un juego de coordinación y el castigo de terceros. Discutimos cómo la complementariedad y el mejoramiento de estas técnicas pueden contribuir a la validez externa de los estudios experimentales de corrupción.

Bribery experiments investigate the factors that modulate decisions in corrupt exchanges. To measure behaviours that are representative of decisions in the real world, it is necessary for the social norms that are typically transgressed in corruption to be adequately represented in the experiments. In this review, we critically present three techniques used to measure or generate social norms in economic experiments: Framing effects, the estimation of social norms through a coordination game, and third-party punishment. We discuss ways in which the complementarity and improvement of these techniques can contribute to the external validity of experimental studies on corruption., Los estudios experimentales de sobornos investigan los factores que modulan los comportamientos vinculados a estas situaciones de corrupción. Para que capten conductas análogas a la realidad, es necesario que representen de manera apropiada las normas sociales que se ven transgredidas cuando hay corrupción. En esta revisión presentamos críticamente tres técnicas para medir o generar normas sociales en experimentos económicos: el efecto de marco, la estimación de normas mediante un juego de coordinación y el castigo de terceros. Discutimos cómo la complementariedad y el mejoramiento de estas técnicas pueden contribuir a la validez externa de los estudios experimentales de corrupción., Os estudos experimentais de subornos investigam os fatores que modulam os comportamentos vinculados a estas situações de corrupçào. Para captarem condutas análogas à realidade, é necessário que representem, de maneira apropriada, as normas sociais que sào transgredidas quando há corrupçào. Nesta revisào, apresentamos criticamente três técnicas para medir ou gerar normas sociais em experimentos econômicos: o efeito quadro, a estimaçào de normas mediante um jogo de coordenaçào e a puniçào de terceiros. Discutimos como a complementariedade e o aprimoramento destas técnicas podem contribuir para a validade externa dos estudos experimentais de corrupçào.

Minority reserves are an affirmative action policy proposed by Hafalir et al. (2013) in the context of school choice. In a laboratory experiment, we find that adding minority reserves to the GS and TTC mechanisms has positive effects on stability but is quite disappointing in terms of efficiency. Also GS induces higher rates of truth-telling by minority students and thus outclasses TTC.

Recent theories of expectation-based reference-dependent preferences offer a structured approach of the formation of reference points, yet do not incorporate important context-specific characteristics. One implicit assumption is that individuals form their reference point as expectations by correctly predicting the probabilistic environment they are facing. In an experimental setup, we demonstrate that a simple change in the framing of a decision problem alters the reference point formation by evoking a different moment of first focus. Apart from providing evidence on the limitations of current theories of expectation-based reference dependence, this paper further offers a theoretical extension that overcomes these limitations and allows reference points to be contingent on contextual effects., info:eu-repo/semantics/published

We examine characteristics and correlates of households in the United States that are most likely to have children at risk of inadequate nutrition - those that report very low food security (VLFS) among their children. Using 11 years of the Current Population Survey, plus data from the National Health and Nutrition Examination Survey (NHANES), we describe these households in great detail with the goal of trying to understand how these households differ from households without such severe food insecurity. While household income certainly plays an important role in determining VLFS among children, we find that even after flexibly controlling for income-to-poverty rates some household characteristics and patterns of program participation have important additional explanatory power. Finally, our examination of the NHANES data suggests an important role for both mental and physical health of adults in the household in determining the food security status of children.

This paper provides new evidence on the formation and anchoring of inflation expectations. I conduct a game experiment and analyze the adjustment as well as the impact of credible targets on expectations. In addition, I evaluate the idiosyncratic determinants on the formation of expectations. The analysis reveals six results: First, I find evidence that long-term inflation expectations are firmly anchored to a credible target. Second, a temporary deviation due to unexpected monetary policy might trigger a decline in credibility, and third a de-anchoring of expectations due to uncertainty. Fourth, I find that people change their expectations little if a credible target exists. Fifth, expectations exhibit a large degree of time-variance only in environments without a target. Sixth, the dynamic adjustment to an ‘incomplete’ equilibrium, which is theoretically unstable, is nevertheless rapid and persistent in case of credible targets. All in all, I demonstrate a unique game setup with contributions to both experimental and monetary economics.

This paper provides new evidence on the formation and anchoring of inflation expectations. I conduct a game experiment and analyze the adjustment as well as the impact of credible targets on expectations. In addition, I evaluate the idiosyncratic determinants on the formation of expectations. The analysis reveals six results: First, I find evidence that long-term inflation expectations are firmly anchored to a credible target. Second, a temporary deviation due to unexpected monetary policy might trigger a decline in credibility, and third a de-anchoring of expectations due to uncertainty. Fourth, I find that people change their expectations little if a credible target exists. Fifth, expectations exhibit a large degree of time-variance only in environments without a target. Sixth, the dynamic adjustment to an ‘incomplete’ equilibrium, which is theoretically unstable, is nevertheless rapid and persistent in case of credible targets. All in all, I demonstrate a unique game setup with contributions to both experimental and monetary economics.

This paper provides new evidence on the formation and anchoring of inflation expectations. I conduct a game experiment and analyze the adjustment as well as the impact of credible targets on expectations. In addition, I evaluate the idiosyncratic determinants on the formation of expectations. The analysis reveals six results: First, I find evidence that long-term inflation expectations are firmly anchored to a credible target. Second, a temporary deviation due to unexpected monetary policy might trigger a decline in credibility, and third a de-anchoring of expectations due to uncertainty. Fourth, I find that people change their expectations little if a credible target exists. Fifth, expectations exhibit a large degree of time-variance only in environments without a target. Sixth, the dynamic adjustment to an ‘incomplete’ equilibrium, which is theoretically unstable, is nevertheless rapid and persistent in case of credible targets. All in all, I demonstrate a unique game setup with contributions to both experimental and monetary economics.

We used eye-tracking to measure the dynamic patterns of visual information acquisition in two-player normal-form games. Participants played one-shot games in which either, neither, or only one of the players had a dominant strategy. First, we performed a mixture models cluster analysis to group participants into types according to the pattern of visual information acquisition observed in a single class of games. Then, we predicted agents' choices in different classes of games and observed that patterns of visual information acquisition were game invariant. Our method allowed us to predict whether the decision process would lead to equilibrium choices or not, and to attribute out-of-equilibrium responses to limited cognitive capacities or social motives. Our results suggest the existence of individually heterogeneous-but-stable patterns of visual information acquisition based on subjective levels of strategic sophistication and social preferences.

This paper provides new evidence on the formation and anchoring of inflation expectations. I conduct a game experiment and analyze the adjustment as well as the impact of credible targets on expectations. In addition, I evaluate the idiosyncratic determinants on the formation of expectations. The analysis reveals six results: First, I find evidence that long-term inflation expectations are firmly anchored to a credible target. Second, a temporary deviation due to unexpected monetary policy might trigger a decline in credibility, and third a de-anchoring of expectations due to uncertainty. Fourth, I find that people change their expectations little if a credible target exists. Fifth, expectations exhibit a large degree of time-variance only in environments without a target. Sixth, the dynamic adjustment to an ‘incomplete’ equilibrium, which is theoretically unstable, is nevertheless rapid and persistent in case of credible targets. All in all, I demonstrate a unique game setup with contributions to both experimental and monetary economics.

In some economic games, participants systematically display behavior that departs from the model of payoff maximization, and this is usually attributed to social preferences. In this paper we focus on a new interactive context, a mixed-motive game called "Alternative Traveler's Dilemma" (ATD). In this context, most participants choose strictly dominated strategies. Preliminary studies suggest the reason for such a tendency is that participants have social preferences, usually competitive in nature. The question is whether some cognitive factors should also be included in models that account for the tendency at stake. More specifically, we investigate whether participants neglect payoff maximization, that is, whether they fail to notice that, by pursuing some competitive goal, they are not maximizing their payoffs. We report the results of an experiment that supports this hypothesis. We conclude that in order to explain anomalous behavior in the ATD, and similar games, we need to study the cognitive factors that bound participants' strategies and understanding of the game., En algunos juegos económicos el comportamiento de los participantes difiere de manera sistemática del modelo de maximización de pagos y esto es usualmente atribuido a preferencias sociales. En este artículo, nos enfocamos en un nuevo contexto interactivo, un juego de motivos mixtos llamado "dilema del viajero alternativo" (DVA). En este contexto, la mayoría de los participantes eligen estrategias estrictamente dominadas. Estudios preliminares sugieren que los participantes tendrían preferencias sociales, usualmente de naturaleza competitiva. La pregunta es si algún factor cognitivo debería ser también incluido en el modelo que explica la tendencia de elección en cuestión. Más específicamente, investigamos si los participantes son negligentes con respecto a la maximización de pagos; es decir, no se dan cuenta de que, al perseguir determinado fin competitivo, se están perdiendo de maximizar sus ganancias. Reportamos un experimento que soporta esta hipótesis. Concluimos que para explicar comportamiento anómalo en el DVA y juegos similares, se necesitan estudiar los factores cognitivos que limitan las estrategias y el entendimiento del juego por parte de los participantes., Em alguns jogos econômicos, o comportamento dos participantes difere, de maneira sistemática, do modelo de maximização de pagamentos e isto é usualmente atribuído a preferências sociais. Neste artigo, nos focamos em um novo contexto interativo, um jogo de motivos mistos chamado "dilema do viajante alternativo" (DVA). Neste contexto, a maioria dos participantes escolhem estratégias estritamente dominadas. Estudos preliminares sugerem que os participantes teriam preferências sociais, usualmente de natureza competitiva. A pergunta é se algum fator cognitivo deveria ser também incluído no modelo que explica a tendência dessa escolha. Mais especificamente, pesquisamos se os participantes são negligentes com relação à maximização de pagamentos; quer dizer, não percebem que, perseguindo determinado fim competitivo, estão deixando de maximizar os seus ganhos. Reportamos um experimento que sustenta esta hipótese. Concluímos que, para explicar o comportamento anómalo no DVA e jogos similares, é preciso estudar os fatores cognitivos que limitam as estratégias e o entendimento do jogo por parte dos participantes.

In contrast to the cheap talk literature, our laboratory experiment studies the impact of monetary incentives on real, costly and truthful communication effort choices. It investigates and confirms some predictions of the Dewatripont and Tirole's (2005) modes of communication model.The experiment also gives evidence that, in a situation where a sender tries to convince a receiver to accept a project, the receiver pursues one out of two communication goals.On the one hand, if without any communication the receiver would refuse the project, his communication objective is to identify and accept a high quality project. His effort depends positively on the earning he wins when accepting a high quality project. On the other hand, if without any communication the receiver would accept the project, his communication objective is to identify and refuse a low quality project. His effort depends positively on his loss when accepting a low quality project., info:eu-repo/semantics/published

We summarise our two sets of controlled experiments designed to see if single-sex classes within coeducational environments modify studentsf risk]taking attitudes. In Booth and Nolen (2012b), subjects are in years 10 and 11, while in Booth, Cardona]Sosa and Nolen (2014), they are first]year university students randomly assigned to single]sex and coed classes. While on average females are significantly less likely than men to make risky choices, on exposure to single]sex environments they behave the same as the males. Thus part of the observed gender difference in behavior under uncertainty found in previous studies might reflect social learning rather than inherent gender traits.

While politically attractive in order to generate tax revenues, the effects of a financial transaction tax (FTT) are scientifically disputed, not the least because seemingly small details of its implementation may matter a lot. In this paper, we provide experimental evidence on the different effects of a FTT, depending on whether it is implemented as a tax on markets, on residents, or a combination of both. We find that the effects of a tax on markets are different from a tax on residents, with negative effects of a market tax on volatility and trading volume. The residence principle shows none of these undesired effects. In addition to studying aggregate market outcomes, we investigate how individual traders react to different forms of a FTT and whether their risk attitude is related to these reactions. We find no such relationship, meaning that a FTT affects traders with different risk tolerances similarly.

In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. We find that tax evasion attempts – independently of whether they are successful or not – lead to efficiency losses in the form of too low quality and less frequent trade. Thus, shadow economies induce an excess burden not only by hampering the collection of tax revenues, but also by reducing market efficiency.

In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. We find that tax evasion attempts – independently of whether they are successful or not – lead to efficiency losses in the form of too low quality and less frequent trade. Thus, shadow economies induce an excess burden not only by hampering the collection of tax revenues, but also by reducing market efficiency.

Credence goods, such as car repairs or medical services, are characterized by severe informational asymmetries between sellers and consumers, leading to fraud in the form of provision of insufficient service (undertreatment), provision of unnecessary service (overtreatment) and charging too much for a given service (overcharging). Recent experimental research involving a standard (student) subject pool has examined the influence of informational and market conditions on the type and level of fraud. We investigate whether professional car mechanics – as real sellers of credence goods – react in the same way to changes in informational and institutional constraints. While we find qualitatively similar effects in the fraud dimensions of undertreatment and overcharging for both subject pools, car mechanics are significantly more prone to supplying unnecessary services in all conditions, which could be a result of decision heuristics they learned in their professional training.

While politically attractive in order to generate tax revenues, the effects of a financial transaction tax (FTT) are scientifically disputed, not the least because seemingly small details of its implementation may matter a lot. In this paper, we provide experimental evidence on the different effects of a FTT, depending on whether it is implemented as a tax on markets, on residents, or a combination of both. We find that the effects of a tax on markets are different from a tax on residents, with negative effects of a market tax on volatility and trading volume. The residence principle shows none of these undesired effects. In addition to studying aggregate market outcomes, we investigate how individual traders react to different forms of a FTT and whether their risk attitude is related to these reactions. We find no such relationship, meaning that a FTT affects traders with different risk tolerances similarly.

Credence goods, such as car repairs or medical services, are characterized by severe informational asymmetries between sellers and consumers, leading to fraud in the form of provision of insufficient service (undertreatment), provision of unnecessary service (overtreatment) and charging too much for a given service (overcharging). Recent experimental research involving a standard (student) subject pool has examined the influence of informational and market conditions on the type and level of fraud. We investigate whether professional car mechanics – as real sellers of credence goods – react in the same way to changes in informational and institutional constraints. While we find qualitatively similar effects in the fraud dimensions of undertreatment and overcharging for both subject pools, car mechanics are significantly more prone to supplying unnecessary services in all conditions, which could be a result of decision heuristics they learned in their professional training.

In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. We find that tax evasion attempts – independently of whether they are successful or not – lead to efficiency losses in the form of too low quality and less frequent trade. Thus, shadow economies induce an excess burden not only by hampering the collection of tax revenues, but also by reducing market efficiency.

In contrast to the cheap talk literature, our laboratory experiment studies the impact of monetary incentives on real, costly and truthful communication effort choices. It investigates and confirms some predictions of the Dewatripont and Tirole's (2005) modes of communication model.The experiment also gives evidence that, in a situation where a sender tries to convince a receiver to accept a project, the receiver pursues one out of two communication goals.On the one hand, if without any communication the receiver would refuse the project, his communication objective is to identify and accept a high quality project. His effort depends positively on the earning he wins when accepting a high quality project. On the other hand, if without any communication the receiver would accept the project, his communication objective is to identify and refuse a low quality project. His effort depends positively on his loss when accepting a low quality project., info:eu-repo/semantics/published