Much of economics assumes that higher incentives increase participation in a transaction only because they exceed more people's reservation price. This paper shows theoretically and experimentally that when information about the consequences is costly, higher incentives also change reservation...

In this paper, we analyze a principal's optimal feedback policy in tournaments. We close a gap in the literature by assuming the principal to be unable to commit to a certain policy at the beginning of the tournament. Our analysis shows that in equilibrium the principal reveals in-termediate...

Myopic loss aversion (MLA) has been established as one prominent explanation for the equity premium puzzle. In this paper we address two issues related to the effects of MLA on risky investment decisions. First, we assess the relative impact of feedback frequency and investment flexibility (via...

We experimentally examine the effect of self-serving information avoidance on democratic and individual decisions in the context of climate change mitigation. Subjects need to choose between two allocations which differ in own payoffs and contributions to carbon offsets. In a between-subjects...

Online platforms provide search tools that help consumers to get betterfitting product offers. But this technology makes consumer search behavior also easily traceable for the platform and allows for real-time price discrimination. Consumers face a trade-off: Search intensely and receive better...