This paper pits neoclassical theory against prospect theory by investigating several clean tests of the competing hypotheses. Consistent with previous work, the field experimental data suggest that prospect theory adequately organizes behavior among inexperienced consumers, whereas consumers...

Exploiting new data from a survey and behavioral experiment conducted in Peru we analyze individuals?preferences for securing income in old age. We identify a group that is unrationed by the mandate to save in Peruç—´ pension system, and draw insights from their affiliation and contribution...

One conjecture in the theory of incentives is that incentives based on broader outcomes may be better at motivating agents than incentives based on narrow measures. A more nuanced statement of this conjecture is that incentives of different breadth are appropriate for different agents. We...