When a sequence of decision makers with private information announce public predictions, initial conformity can create an information cascade in which all future decision makers will rationally match the early announcements and disregard private information. This study uses event-related...

When a sequence of decision makers with private information announce public predictions, initial conformity can create an information cascade in which all future decision makers will rationally match the early announcements and disregard private information. This study uses event-related...

Although previous literature demonstrates that punishment is more efficient and stable than reward, in our daily life, numerous kinds of rewards permeate. One possible explanation for widely use of reward institution in practice is that it’s an efficient and satisfactory way to enhance...

Threat is a strategy that can be used to impact decision-making processes in bargaining. Abundant evidence suggests that credible threat and incredible threat both influence the obeisance of others. However, it is not clear whether the decision-making processes under credible threat and...

Quarantine is a public health measure that has been used for centuries to prevent the spread of infectious diseases; however, the social cost of such measures is poorly understood. Based on a quarantine event, we conduct an online lab-in-the-field experiment in China to examine the role of...

This study examines business cycle dynamics of the asymmetry in learning from financial information. We prime financial professionals with either a boom or a bust scenario and find that they exhibit pro-cyclical asymmetry in learning from positive versus negative information. Such pro-cyclical...

Despite prevailing research asserting the efficiency and stability of punishment over rewards in an environment of perfect information, the prevalence of reward structures in everyday life remains apparent. This commonality might be explained by the enhanced cooperative behavior and welfare...