Models of statistical discrimination typically assume that employers make rational inferencefrom (education) signals. However, there is a large amount of evidence showing thatmost people do not update their beliefs rationally. We use a model and two experimentsto show that employers who are...

We conduct an experiment to uncover the reasons behind the typically large behavioral variation and low explanatory power of Nash equilibrium observed in Tullock contests. In our standard contest treatment, only 7% of choices are consistent with Nash equilibrium which is in line with the...

This paper studies the spread of compliance behavior in neighborhood networks involving over 500,000 households in Austria. We exploit random variation from a field experiment which varied the content of mailings sent to potential evaders of TV license fees. Our data reveal a strong treatment...