A holdup problem on workers’ skill investment arises when employers can adopt discriminatory hiring norm to extract higher than socially optimal profit. In such an economy, productivity (skills) and non-productivity oriented characteristics (discrimination) both matter when determining which...

Hedonic escalation is an increasing appreciation for each additional bite of a palatable food. Hedonic escalation is more likely to occur when (1) a palatable food consists of a complex combination of flavors and (2) a person has the ability to identify the flavors. Consequently, hedonic...