Research on the influence of cognitive effort on decision making has grown in recent years. We argue that when cognitive effort is required, a decision maker requests a monetary premium for his effort. In our experiment, the participants were asked to bid a price for lotteries of differing...

This paper presents a multi-period experiment that extends a classic experiment on investment allocation preferences by adding colors to the feedback returned to participants. The results show that investors allocate the same proportion of their investment to the stock and the bond funds without...

This paper examines experimentally the effect of a different payment mechanism in the case of a tie on an agent's willingness to pay (WTP) in a winner-take-all contest. We examine how a small chance to pay tax in case of a tie affects the contest's bids. Our hypothesis is that the tax payment is...