We investigated the effect of large changes in financial incentives on the process of decision-making by measuring autonomic arousal and visual attention during an incentivized lottery-choice task. High real stakes were accompanied by increased risk aversion and physiological arousal, and by...

We study the effect of communication on beliefs, behavior, and efficiency in the context of hold-up problems with a punishment option. We apply a novel behavioral motivation, frustration-dependent anger, that links unmet payoff expectations with the willingness to forgo material payoffs to...