This paper analyzes the nexus between income comparisons and perceptions of unfair pay. We apply a large German household survey and conduct wage regressions to conclude whether individuals who perceive their wages as unfair earn significantly lower wages than fairly paid individuals with...

In the United States do hours of household work vary by whether individuals are in different-race or same-race couples? American Time Use Survey data for years 2003-2009 are analyzed for samples of white and black male and female respondents. We find that white women married to black men devote...

Over the past decade randomized field experiments have gained prominence in the toolkit of empirical economics and policy making. In an article titled "Field Experiments in Economics: The Past, the Present, and the Future," Levitt and List (2009) make three main claims about the history,...

Rational expectations assume perfect, model consistency between beliefs and market realizations. Here we discuss behaviorally rational expectations, characterized by an observable, parsimonious, and intuitive form of consistency between beliefs and realizations. We discuss three case-studies....

In certain economic experiments, some participants willingly pay a cost to punish peers who contribute too little to the public good. Because such punishment can lead to improved group outcomes, this costly punishment has been conceived of as altruistic. Here, we provide evidence that individual...

Decision making, based on forward looking deliberation, assumes a cognitive representation of the causal relationships determining the consequences of behavioral choices. We refer to this perceived causal structure as the mental model which, of course, can — and in all complex environments —...

This paper analyzes the nexus between income comparisons and perceptions of unfair pay. We apply a large German household survey and conduct wage regressions to conclude whether individuals who perceive their wages as unfair earn significantly lower wages than fairly paid individuals with...

In this paper, we introduce a generalized version of impulse balance equilibrium. The stationary concept is applied to 3 × 3 games based on the Bailiff and Poacher Game (Selten, 1991) and its predictive success is experimentally tested against the one of Nash equilibrium. Experiments with 26...