We report the results of two laboratory experiments that study how university student and staff participants chose retirement savings investment options using ‘user-friendly' information prescribed by regulators. We demonstrate that choices of more than 20% of participants cannot be predicted...

We investigate experimentally the conjecture that loss avoidance solves the tension in stag-hunt games for which payoff dominance and risk dominance make conflicting predictions. Contrary to received textbook wisdom, money-losing outcomes do shift behavior, albeit not strongly, toward the...

We propose a computational model to study (the evolution of) post-secondary education. Consumer who differ in quality shop around for desirable colleges or universities. Firm that differ in quality signal the availability of their services to desirable students. Colleges and universities, as...

The common-ratio effect and the Allais paradox are the two best‐known violations of expected utility theory. We reexamine data from 38 experimental articles (127 designs/ parameterizations, 12717 revealed choice patterns) and find that the common-ratio effect is systematically affected by...

We consider a two-layered review system of environmental regulation where a polluting firm periodically self-reports its emissions to a regulatory authority. The system typically requires a third party to verify the firm's report and, in addition, an official of the regulatory authority to...

We report results from a weak-link - often also called minimum-effort - game experiment with multiple Pareto-ranked strict pure-strategy Nash equilibria, using a real-effort rather than a chosen-effort task: subjects have to sort and count coins and their payoff depends on the worst performance...

We study the conditions under which it is rational for a representative entrepreneur to start a nonprofit firm. Taking as point of departure a model of entrepreneurial choice proposed by Glaeser and Shleifer (2001), we analyze consequences of weak enforcement of the non-distribution constraint...

Read (2005), in The Journal of Economic Methodology, took our target article in Behavioral and Brain Sciences (Hertwig amp; Ortmann 2001) as one point of departure to question the usefulness of monetary incentives for experimental work. In making his case, he misrepresents our analysis, and...

We study experimentally the nature of dominance violations in three minimalist dominance solvable guessing games. We examine how subjects' reported reasoning processes translate into their stated choices and beliefs about others' choices, and how both reasoning processes and choices relate to...