Decision Making

Experiments are used to examine the effects of social comparisons in ultimatum bargaining. We inform responders about the average offer before they decide whether to accept or reject their specific offer. This significantly increases offers and offer...

Using experiments, we examine whether the decision to trust a stranger in a one-shot interaction is equivalent to taking a risky bet, or if a trust decision entails an additional risk premium to balance the costs of trust betrayal. We compare a binary...

Communication increases contributions to public goods. Our experimental results indicate that communication is not always required. Silent identification suffices to raise solidarity in prisoner's dilemma and dictator games. Increases in solidarity are...

The price system is generally thought to be the epitome of efficiency. In some cases, however, lotteries are preferred to the market as a social decision-making system for reasons of fairness. As recent research has shown, neither procedure is always well...

Economic rents are the driving force of market economies. Resource owners constantly look for opportunities to create and exploit economic rents which, however, in the dynamics of the market process dissipate as new entrants try to appropriate the profits...

We examine a new intervention to overcome gender biases in hiring, promotion, and job assignments: an “evaluation nudge,” in which people are evaluated jointly rather than separately regarding their future performance. Evaluators are more likely to focus...