Receiving a gift can create an impulse to reciprocate, even when doing so may be inefficient and potentially harmful to a third party. For instance, after receiving bribes, people may exhibit impulses to reciprocate. This paper provides a theoretical framework for a pure gift effect on...

Men and women differ in their attitudes towards and preferences for risk while investing. Psychologists suggest that women lack confidence and are more methodical in their information processing and accumulation style. These factors contribute to the increased perception of risk in them as...

While weather has been shown to affect financial markets and financial decision making, a still open question is the channel through which such influence is exerted. By employing a multiple price list method, this paper provides direct experimental evidence that sunshine and good weather promote...

The gift-exchange game is a form of sequential prisoner's dilemma, developed by Fehr, Kirchsteiger, and Riedl (1993), and popularized in a series of papers by Ernst Fehr and co-authors. While the European studies typically feature a high degree of gift exchange, the few U.S. studies provide some...

A basic tenet in elementary microeconomics is tax incidence equivalence. This tenet holds that the burden of a unit tax on buyers and sellers is independent of who actually pays the tax. By contrast, policymakers and the public often mistake statutory incidence for economic incidence. Recent...