Research shows that evidence-based algorithms more accurately predict the future than do human forecasters. Yet, when forecasters are deciding whether to use a human forecaster or a statistical algorithm, they often choose the human forecaster. This phenomenon, which we call algorithm aversion,...

Social behavior is heavily influenced by the perception of the behaviors of others. We consider how perceptions (and misperceptions) of kindness can increase generosity in economic transactions. We investigate how these perceptions alter behavior in a novel a real-life situation which pits...

A field experiment (N=113,047 participants) manipulated two factors in the sale of souvenir photos. First, some customers saw a traditional fixed price, whereas others could pay what they wanted (including $0). Second, approximately half of the customers saw a variation in which half of the...

Why do different people give to different causes? We argue that the sympathy inherent to a close relationship with a victim extends to other victims, leading benefactors to prefer charities that help those suffering from the misfortunes that have affected their friends and loved ones. Study 1, a...

Standard economic models assume that the weight given to information from different sources depends exclusively on its diagnosticity. In this paper we study whether the same piece of information is weighted more heavily simply because it arose from direct experience rather than from observation....