The author highlights bargaining examples that use expected utility theory. Bargainer payoffs in the event of a dispute are represented by a simple lottery. Expectations are assumed to affect a bargainer’s subjective probabilities over lottery outcomes, and risk preferences affect the...

This paper considers an extension of the classical static labor-leisure choice model to allow for an on-the-job leisure choice. The key result is that an income-compensated wage increase, while theoretically increasing hours worked, will likely increase on-the-job leisure.

The author conducts experiments examining fairness preferences (Andreoni and Miller, 2002) and compares cash versus extra credit points as the reward medium. Additionally, he explores the role that classroom experiment timing—over the course of a semester—can have on outcomes. The results...

There has been growing interest within the economics discipline in the role of equity concerns in the distribution of resources. This paper presents empirical evidence from controlled laboratory experiments where third-party decision makers allocate resources between two individuals. The...

This paper examines the use of prizes as an incentive device in team production environments. We reward team members in two different ways. First, heterogeneously endowed individuals are given a monetary prize for high absolute levels of contributions. Secondly, a prize is given for high levels...

This article reports the results from a series of laboratory auction markets in which consumers bid on meat characteristics. The characteristics examined include meat traceability (i.e., the ability to trace the retail meat back to the farm or animal or origin), transparency (e.g., knowing that...

This paper reports results from a unique two-stage experiment designed to examine the spillover effects of optimism and pessimism. In stage 1, we induce optimism or pessimism onto subjects by randomly assigning a high or low piece rate for performing a cognitive task. We find that participants...

Subjects performed a decision task (Grether, 1980) in both a well-rested and experimentally sleep-deprived state. We found two main results: 1) final choice accuracy was unaffected by sleep deprivation, and yet 2) the estimated decision model differed significantly following sleep-deprivation....

Research investigating risk preference has pointed towards motivation and ability as important factors for determining the strength and likelihood of the framing effect. In the current study we explored the influence of individual differences in motivation and ability through circadian rhythm....

Statistical discrimination occurs when distinctions between demographic groups are made on the basis of real or imagined statistical distinctions between the groups. While such discrimination is legal in some cases (e.g., insurance markets), it is illegal and/or controversial in others (e.g.,...