This paper investigates the impact of insurance contract design on the behavior of filing fraudulent claims in an experimental setup. We test whether or not peoples' fraud behavior varies for insurance contracts with full coverage, a straight deductible or variable premiums (bonus-malus...

We conduct a microfinance experiment in which subjects are jointly responsible for credit repayments and decide repeatedly about the effort put into risky investment projects. Although average effort levels are generally high, we find that moral hazard problems still persist among borrowers....

The `Four-Eyes-Principle' (4EP) (business has to be conducted by at least two individuals, hence four eyes) is seen as one of the most potent measures against corruption although it lacks any theoretical or empirical justification. We show in a laboratory experiment that the net effect of the...

In a recent paper, Koszegi and Rabin (2009) make a novel prediction about people's attitudes towards noninstrumental information, i.e. information about fixed but unknown future outcomes. People prefer to get information clumped together rather than piecewise. We use a controlled lab experiment...