We study the individual behavior of students and workers in an experiment where they repeatedly face the same cooperative task. The data show that clerical workers differ from college students in overall cooperation rates, strategy adoption and use of punishment opportunities. Students cooperate...

We report experimental evidence on the effect of observability of actions on bank runs. We model depositors’ decision-making in a sequential framework, with three depositors located at the nodes of a network. Depositors observe the other depositors’ actions only if connected by the network....

This paper studies unshrouding decisions in a framework similar to Gabaix and Laibson (2006), but considers an alternative unshrouding mechanism where the impact of advertising add-on information depends on the number of unshrouding firms. We show that shrouding becomes less prevalent as the...

When an individual's preferences depend on the time or ‘frame’ at which decisions are made, the preferences that appear at different frames must be aggregated in order to make social decisions. Suppose we aggregate each individual i's frame-based preferences with a ‘behavioral welfare...

We investigate the generation of chaos in economic models through exogenous shocks. The perturbation is formulated as a pulse function where either values or instants of discontinuity are chaotically behaved. We provide a rigorous proof of the existence of chaos in the perturbed model. The...

Empirical research suggests that – despite strengthening conventional incentives to put in effort – exerting control might reduce worker performance. The present paper shows that intention-based reciprocity can explain such hidden costs of control if individuals differ in their propensity...

We study the process of equilibrium selection in games when players have social preferences of the type discussed, among others, by Rabin (1993) and Segal and Sobel (2007). To this end, we employ a standard noisy version of the best response dynamics. We obtain several results concerning some...

This paper investigates how outside ranking organizations such as U.S. News and World Report affect colleges’ admission decisions. To do this, we focus on a policy that has received criticism for being motivated by ranking concerns: optional reporting of SAT I scores. This policy allows...

Experimental evidence has accumulated highlighting the limitations of formal and explicit contracts in certain situations, and has identified environments in which informal and implicit contracts are more efficient. This paper documents the superior performance of explicit over implicit...

Trust is a central component of social and economic interactions among humans. While rational self-interest dictates that “investors” should not be trusting and “trustees” should not be trustworthy in one-shot anonymous interactions, behavioral experiments with the “trust game” have...