Drobner (2022) examines the effect of manipulating experimental subjects' expectations about uncertainty resolution in learning about their performance on their belief updating patterns in an ego-relevant domain. In their preferred empirical specification, the author finds that individuals...

Managers play a crucial role in shaping firm performance. However, we know little about how managers perform on one of their key responsibilities: managing strategic decisions. The challenge of studying the quality of these decisions is that we often only observe the outcome associated with the...

How does the experience of success in combination with confidence affect meritocratic beliefs and preferences for redistribution? In a large-scale experiment, we manipulate both the level of confidence in own performance and the outcome of a competition to provide causal evidence. First, we...

We explain agents’ trading behaviors and market outcomes in the presence of expectation-based endowment effects in carbon cap and trade. Building on Kőszegi and Rabin (2006)’s reference-dependent model with forward-looking reference points, we show how firms’ concerns about high future...

Optimization problems in operations and finance often include a cost that is proportional to the expected amount by which a random variable exceeds some fixed quantity, known as the expected loss function. Representation of this function often leads to computational challenges, depending on the...

In tension with the standard assumption that individuals understand how to act on their beliefs about economic quantities, research measuring subjective beliefs has found that the relationship between beliefs and behavior is often quantitatively weak and that correcting beliefs often fails to...

Having information about an uncertain event is crucial for informed decision-making. This paper introduces a simple framework in which 1) a principal uses the reported beliefs of multiple agents to make a decision and 2) the agents reporting a belief are affected by the decision. Naturally, the...

What pay can a worker expect when he is unsure about his ability (or effort supply) and that of his co-workers? Workers have varying (unobserved) abilities, but can observe their distributions in the population. We uncover four findings. First, we uniquely characterize workers' expected pay in a...

I introduce a new variable, ball-in-play time, to investigate whether referees in football tend to favour home teams while deciding on additional time under social pressure. Hence, any systematic difference between actual and expected additional time can be considered as `bias'. I exploit the...