This paper investigates the crowding-out effect of formal insurance on informal risk-sharing arrangements via theory and laboratory experiment. Our model and simulation predict that the crowding out of private transfers is often more than one-for-one and will reduce the total risk coverage....

This paper investigates whether imperfect foresight affects intertemporal choice using three experiments. We study the effects of both exogenously introduced and naturally occurring (i.e., summer vacation) forecasting difficulties, as well as the effects of increasing internal forecasting...

This paper proposes an approach that demands fewer data to estimate the effect of social interaction on stock market participation. Using data available publicly, we construct a sequence of measures of aggregated stock returns that are based on the same stock returns information and embed social...

Apologies made by physicians for adverse medical events have been identified as a mitigating factor in whether patients decide to litigate. However, doctors are socialized to avoid apologies because apologies admit guilt and invite lawsuits. An apology law, which specifies that a physician’s...