This study investigates whether the effectiveness of advertising is limited by overpricing of the advertised good. Using a proprietary database of residential property sales and listings, we find that 1) advertising is effective in increasing a good's sale hazard and transaction price and 2)...

Based on an experiment with 246 elementary school pupils, we find that, similarly as for adults, lower interest rates, longer savings horizons, and opt-in defaults make children more likely to consume instead of saving; moreover, the amount of savings decreases with lower interest rates and...

This paper shows how retail borrowers' focus on recent interest rates as reference points may lead to maturity choices which are inconsistent with normative predictions. A laboratory experiment reveals that borrowers prefer longer maturities when interest rates have fallen and shorter maturities...

Using a comprehensive dataset of taxi trips operated in New York City (NYC) in 2013, we revisit the labor supply patterns of taxi drivers. Our empirical specification is based on the insight that recent related findings are likely to be driven by the econometric methods applied. Our key result...

It has been shown that individual investors are more likely to buy rather than sell stocks that catch their attention. This can lead to suboptimal choices when attention-attracting qualities of a stock may indirectly detract from its utility. This paper tests the causal effect of extreme stock...

Based on an incentivized non-anonymous trust game with 230 elementary school pupils aged between 6 and 11 years, we investigate the development of trust and trustworthiness across age groups. Trust increases with age, thereby increasing the profits of both the trustor and the trustee. The...