Rounding is a common phenomenon when subjects provide an answer to an open-ended question, both in experimental tasks and in survey responses. From a statistical perspective, rounding implies that the measured variable is a coarsened version of the underlying continuous target variable. Since...

Experimental studies of search behavior suggest that individuals stop searching earlier than the optimal, risk-neutral stopping rule predicts. Two different classes of decision rules could generate this behavior: rules that are optimal conditional on utility functions departing from risk...

The role of trust in promoting economic activity and societal development has received considerable academic attention by social scientists. A popular way to measure trust at the individual level is the so-called "investment game" (Berg et al., 1995). It has been widely noted, however, that risk...

Summary Saving decisions are complex, since there are many concurrent motives for saving a portion of one’s income. However, while the existing literature covers all of these motives, most contributions select only one of them as a focus and relegate the others to the background by making...

Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue that the connection between overconfidence and innovation is more complex than the previous literature suggests. In particular, we show theoretically and experimentally that...

Methods from dynamic modeling and econometrics are used in order to develop a computer model of Illinois grain farmers’ adjustment to a carbon tax policy. All relevant money and material inflows and outflows on Illinois farms and their reaction to a carbon tax policy are explicitly included...