Policy makers increasingly use choice defaults to promote `good' causes by influencing socially relevant decisions in desirable ways, e.g., to increase pro-environmental choices or pro-social behavior in general. Such default nudges are remarkably successful when judged by their effects on the...

Large infrastructure projects often suffer from cost and schedule overruns, mainly due to optimism bias and strategic misrepresentation. Reference class forecasting (RCF) offers a potential remedy. This study presents a comprehensive analysis of the RCF literature with the aim of providing...

This paper investigates how group identification distorts people's beliefs about the ability of their peers in social groups. We find that experimentally manipulated identification with a randomly composed group leads to overconfident beliefs about fellow group members' performance on an...

Effective collaboration within and between organizations requires efficient adaptation to unforeseen change. We study how parties build relational contracts that achieve this goal. We focus on the "clarity problem"---whether parties have a shared understanding of the promises they make each...

Are competitive mechanisms perceived as just sources of economic inequality? Perceptions of fairness violations can have severe economic consequences, as they may cause counterproductive behavior such as rulebook slowdowns or quality shading. To analyze fairness perceptions associated with...

Are competitive mechanisms perceived as just sources of economic inequality? Perceptions of fairness violations can have severe economic consequences, as they may cause counterproductive behavior such as rulebook slowdowns or quality shading. To analyze fairness perceptions associated with...

Are competitive mechanisms perceived as just sources of economic inequality? Perceptions of fairness violations can have severe economic consequences, as they may cause counterproductive behavior such as rule book slowdowns or quality shading. To analyze fairness perceptions associated with...

Effective organizations are able not only to coordinate their members on efficient strategies but also to adapt members' strategies to unforeseen change in an efficient manner. We explore whether part of organizational culture - namely, relational contracts that facilitate both coordination and...

We test the hypothesis that strategic interactions foster overconfidence. We experimentally compare an environment where players have an incentive to overstate their own ability to deter competitors, with one where this incentive is removed. We find that overconfidence persists in the former...