We document an increasing capacity to resist temptation in a time consistent manner from children to teenagers. Competencies develop in two steps: From age 8 on many pupils naively plan and after age 12 successfully implement strategies to resist temptation. Our evidence comes from a food choice...

In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from...

We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert’s provision and charging decisions. We argue that the...

We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. Our results suggest that tax evasion attempts - independently of whether...

Many important markets, such as those for health care or repair services, are characterized by pronounced informational asymmetries between buyers and sellers – because the buyer cannot identify the quality of the product that fits her needs best, while the seller can do so by performing a...