Two non-expected-utility-theory approaches to model decision making under risk are regret theory (Loomes and Sugden, 1982; Bell, 1982) and salience theory (Bordalo, Gennaioli, and Shleifer, 2012). While the psychological underpinning of these two approaches is different, the models share the...

Large knowledge gaps currently exist that limit our ability to understand and characterise dynamics and patterns of land-use intensity: in particular, a comprehensive conceptual framework and a system of measurement are lacking. This situation hampers the development of a sound understanding of...

We analyze the doping behavior of heterogeneous athletes in an environment of private information. In a n-player strategic game, modeled as an all-pay auction, each athlete has private information about his actual physical ability and choses the amount of performance-enhancing drugs. The use of...

We conduct a representative survey experiment in Germany to understand why people support inefficient policies. In particular, we measure beliefs about and preferences for rent control -- a policy that is widely regarded as harmful by experts. To tease out causal mechanisms, we provide randomly...

This paper studies the ability of markets to alleviate taste-based discrimination in a laboratory experiment. We find that markets significantly reduce discrimination relative to individual choice situations with the same payoff structure and the same social group membership of the trading...

We modify the principal-agent model with moral hazard by assuming that the agent is expectation-based loss averse according to Köszegi and Rabin (2006, 2007). The optimal contract is a binary payment scheme even for a rich performance measure, where standard preferences predict a fully...

Confirmation bias, which refers to unintentional and unknowing selectivity in the use of evidence, belongs to the major problems faced by organizations. In this article, we discuss job rotation as a natural solution to this problem. In a nutshell, adopting job rotation provides an organization...

The extant theory on price discrimination in input markets takes the structure of the intermediate industry as exogenously given. This paper endogenizes the structure of the intermediate industry and examines the effects of banning third-degree price discrimination on market structure and...