I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers' perception of a "fair wage" may depend on their previous wage, their reference point. Using a laboratory experiment, I...

Why do some people behave pro-socially? I investigate a reason already proposed by Aristotle. He claims that there is a nexus between virtues and well-being. Using a within-subject experimental design in which each participant plays many classical economic games and answers more than 100...

I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers' perception of a “fair wage” may depend on their previous wage, their reference point. Using a laboratory experiment,...