Intuitively, people should cheat more when cheating is more lucrative, but we find that the effect of performance-based pay-rates on dishonesty depends on how readily people can compare their pay-rate to that of others. In Experiment 1, participants were paid 5 cents or 25 cents per...

Does income tax influence the motivation to work? We propose that the degree of effort exertion in the presence of income tax depends on people's attitudes toward two key components of taxation: redistribution and government intervention. For people favorable toward both, working while taxed is...

Attention is a pivotal resource in the modern economy and plays an increasingly prominent role in economic analysis. We summarize research on attention from both psychology and economics, placing a particular emphasis on its capacity to explain numerous documented violations of classical...

With the advent of the internet and the resulting explosion of easily accessible information, people’s limited capacity for attention has come to play an increasingly important role in the economy and, consequently, so have the psychological forces that determine what people pay attention to....