Crises can cause important societal changes by shifting citizens' preferences and beliefs, but how such change happens remains an open question. Following a representative sample of Americans in a longitudinal multi-wave survey throughout 2020, we find that citizens reduced trust in public...

We theoretically show that loss-averse agents are more likely to lie to avoid receiving a low payoff after a random draw, the lower the ex-ante probability of this bad outcome. The ex-ante expected payoff increases as the bad outcome becomes less likely, and hence the greater is the loss avoided...

We theoretically show that loss-averse agents are more likely to lie to avoid receiving a low payoff after a random draw, the lower the ex-ante probability of this bad outcome. The ex-ante expected payoff increases as the bad outcome becomes less likely, and hence the greater is the loss avoided...

We theoretically show that agents with loss-averse preferences facing a decision to receive a bad financial payoff if they report honestly or to receive a better financial payoff if they report dishonestly are more likely to lie to avoid receiving the low payoff the lower the ex-ante probability...

A significant proportion of credit card users persistently make low repayments on their debt. This paper tests whether a financial tool known as Prize Linked Debt (PLD) can increase credit card debt repayments amongst borrowers who repay the minimum, using an online experiment. PLD entails a...