Markets for credence goods are classified by experts alone being able to identify consumers' problems and determine appropriate services for solution. Examining a market where experts have to invest in costly diagnosis to correctly identify problems and consumers being able to visit multiple...

The notion of bounded rationality has received a considerable attention in the midst of debate over the usefulness of various macroeconomic models. In this paper we empirically seek to analyze the baseline New-Keynesian model with heterogeneous agents who may adopt various heuristics used to...

Trust is an important driver of economic transactions, but how do people decide whom to trust? We conduct an experiment to investigate whether people are able to predict trustworthiness by judging the face of a stranger. The behavior of the second player in the Trust Game is used as a measure of...

Employing data from a representative population survey conducted in New Zealand in 2016, this paper examines factors that influence, or are at least associated with, public trust in the Reserve Bank of New Zealand (RBNZ). The large number of specifically designed questions allows studying the...

Employing data from a representative population survey conducted in New Zealand in 2016, this paper examines factors that influence, or are at least associated with, public trust in the Reserve Bank of New Zealand (RBNZ). The large number of specifically designed questions allows studying the...

This paper investigates the role of social capital in determining one's competitiveness. The analysis exploits the data of the PISA test in math because competitive occupational choices often require high quantitative skills. The empirical results highlight that a higher level of trust in school...

This paper experimentally investigates trust and trustworthiness in a repeated and sequential three-player trust game with probabilistic returns and information asymmetry. It adds to the existing literature by combining experimental features from recent work in the trust game. The authors use...

This paper addresses the behavioral puzzle of women's preference for competition when competitors are also women. Using a framed field experiment with 883 non-standard subjects, we show that none of the determinants of competitive behavior in general, including ability, self-confidence and risk...

Wie erklären sich Unterschiede im guten und erfolgreichen Leben, wenn man dieses an der Lebens- und Arbeitszufriedenheit, dem Bruttostundenlohn, der Gesundheit und den Ausbildungsjahren festmacht? Erkenntnisse fachübergreifender Forschung von Ökonomen und Psychologen werfen die Frage auf, ob...

Ein wesentlicher Baustein des Vertrauens in die Geldpolitik der EZB und damit in den Euro ist die Einhaltung der vereinbarten Rechtsregeln. Dies sieht Ralph Hirdina, Hochschule Aschaffenburg, durch die gegenwärtigen Maßnahmen der EZB nicht mehr gewährleistet und plädiert in seinem Kommentar...

We study whether individuals in a face-to-face situation can successfully exert some lying effort to delude others. We exploit data from a laboratory experiment in which participants were asked to assess videotaped statements as being rather truthful or untruthful. The statements are...

Recent developments in impact evaluation recognise the need to go beyond the intense debate over experimental techniques to incorporate theory-based approaches and qualitative research methods. Motivated by an underlying concern that qualitative research in this new wave of qualitative impact...

People benefit from being perceived as trustworthy. Examples include sellers trying to attract buyers, or candidates in elections trying to attract voters. In a laboratory experiment using exchange games, in which the trustor can choose the trustee, we study whether trustees can signal their...

This study examines the role of actual and perceived financial sophistication (i.e., financial literacy and confidence) for individuals' wealth accumulation. Using survey data from the German SAVE initiative, we find strong gender- and education-related differences in the distribution of the two...

The sharing economy (peer-to-peer based sharing or renting activities coordinated through community-based online services) is typically assumed to be closely related to social trust. The two sharing economy companies Airbnb and Flipkey exist in over 100 countries, allowing us to construct a...

The distinction of risk vs uncertainty as made by Knight has important implications for policy selection. Assuming the former when the latter is relevant can lead to wrong decisions. With the aid of a stylized model that describes a bank’s decision on how to allocate loans, the authors discuss...

We conduct experimental games with police applicants in Germany to investigate whether intrinsically motivated agents self-select into public service. Our focus is on trustworthiness and the willingness to enforce norms as key dimensions of intrinsic motivation in the police context. We find...

We analyze reciprocal behavior when moral wiggle room exists. Dana et al. (2007) show that giving in a dictator game is only partly due to distributional preferences as the giving rate drops when situational excuses for selfish behavior are provided. Our binary trust game closely follows their...