We develop a theoretical model to identify and compare partial and equilibrium effects of uncertainty and the magnitude of fines on punishment and deterrence. Partial effects are effects on potential violators' and punishers' decisions when the other side's behavior is exogenously given....

We analyze mechanism choices of competing sellers with private valuations and show the existence of monotone pure strategy equilibria where sellers with higher reservation value choose mechanisms with a lower selling probability and a larger revenue in case of trade. As an application we...

We analyze mechanism choices of competing sellers with private valuations and show the existence of monotone pure strategy equilibria where sellers with higher reservation value choose mechanisms with a lower selling probability and a larger revenue in case of trade. As an application we...

We use data from a German health insurer to study how the impact of switching from a fee for service system (FFS) to a high powered incentive scheme (prospective payment system; PPS) depends on the characteristics of patients and hospitals. As hospitals had a transition period of several years...

This paper studies drivers’ responses to a ‘notched’ penalty scheme in which speeding penalties are stepwise and discontinuously increasing in speed. We present survey evidence suggesting that drivers in Germany are well aware of the notched penalty structure. Based on a simple analytical...

Does loss aversion apply to social image concerns? In a laboratory experiment, we first induce social image in a relevant domain, intelligence, through public ranking. In a second stage, subjects experience a change in rank and are offered scope for lying to improve their final, also publicly...

This paper demonstrates that structural factors can shape people's self-control. We study the determinants of adult self-control using population-representative data and exploiting two sources of quasi-experimental variation-Germany's division and compulsory schooling reforms. We find that...

Lack of information about COVID-19 and its spread may have contributed to excess mortality at the pandemic's onset, In April and May 2020, we implemented a randomized controlled trial with more than 3,000 households in 150 Bangladeshi villages, Our one-to-one information campaign via phone...

Debates about affirmative action often revolve around fairness. Accordingly, we document substantial heterogeneity in the fairness perception of various affirmative action policies. But do these differences translate into different consequences? In a laboratory experiment, we study three...

Lack of information about COVID-19 and its spread may have contributed to excess mortality at the pandemic's onset. In April and May 2020, we implemented a randomized controlled trial with more than 3,000 households in 150 Bangladeshi villages. Our one-to-one information campaign via phone...