How do people attribute responsibility when an outcome is not caused by an individual but results from a decision chain involving several people? We study this question in an experiment, in which five voters sequentially decide on how to distribute money between them and five recipients. The recipients can reward or punish each voter, which we use as measures of responsibility attribution. In the aggregate, we find that responsibility is attributed mostly according to the voters’ choices and the pivotality of the decision, but not for being the initial voter. On the individual level, we find substantial heterogeneity with three overall patterns: Little to no responsibility attribution, pivotality-driven, and focus on choices. These patterns are similar when praising voters for good outcomes and blaming voters for bad outcomes.

Overbidding in sealed-bid second-price auctions (SPAs) has been shown to be persistent and associated with cognitive ability. We study experimentally to what extent cross-game learning can reduce overbidding in SPAs, taking into account cognitive skills. Employing an order-balanced design, we use first-price auctions (FPAs) to expose participants to an auction format in which losses from high bids are more salient than in SPAs. Experience in FPAs causes substantial cross-game learning for cognitively less able participants but does not affect overbidding for the cognitively more able. Vice versa, experiencing SPAs before bidding in an FPA does not substantially affect bidding behavior by the cognitively less able but, somewhat surprisingly, reduces bid shading by cognitively more able participants, resulting in lower profits in FPAs. Thus, ‘cross-game learning’ may rather be understood as ‘cross-game transfer’, as it has the potential to benefit bidders with lower cognitive ability whereas it has little or even adverse effects for higher-ability bidders.

Individuals were found to anonymously predict positive election outcomes for their preferred candidate. Yet, there is little scientific knowledge about election predictions made in the context of same-camp political communications (i.e., partisan communications) that are presumably meant to encourage other supporters. In five studies of low-information elections and a study of hypothetical U.S. elections (n = 1889), we found that people tended to communicate favorable forecasts to others sharing their view, compared to the neutral point and to the actual election outcomes. On the other hand, negative framing reduced the positivity of forecasts in these communications to the extent that it led most participants to predict an election loss. This occurred in response to a single addressee acting discordantly and even more strongly when the election results were phrased as a drop. When both positive and negative framing options were available, this still negativity affected participants’ predictions even though only a minority selected the negative framing option. Thus, people tend to make optimistic election predictions in partisan communications, but this pattern is easily manipulable given subtle changes in the forecasting prompt, either by negative framing or selectable positive and negative framing.

We introduce price freeze options into a model of sequential search. The model's predictions are tested in a laboratory experiment. The experiment varies (1) whether freezing is possible or not, (2) the cost of freezing, and (3) the time horizon. Overall, the observed treatment effects are consistent with the predictions of our model. Assuming that individuals experience regret, fail to ignore sunk search costs, misperceive the number of periods remaining, or are risk-averse, does not improve upon the performance of the model. Our results support the use of the assumption of optimal search behavior in theoretical and empirical studies.

The consequences of most economic decisions are uncertain; they are conditional on events with unknown probabilities that decision makers evaluate based on their beliefs. In addition to consequences and beliefs, the context that generates events—the source of uncertainty—can also impact preferences, a pattern called source dependence. Despite its importance, there is currently no definition of source dependence that allows for comparisons across individuals and sources. This paper presents a tractable definition of source dependence by introducing a function that matches the subjective probabilities of events generated by two sources. It also presents methods for estimating such functions from a limited number of observations that are compatible with commonly-used choice-based approaches for separating attitudes from beliefs. As an illustration, we implement these methods on three datasets, including two original experiments, and show that they consistently capture clear, albeit heterogeneous, patterns of source dependence between natural sources. Our approach provides a framework for future research to explore how source dependence varies across individuals and situations.

In recent years, experimental economics has seen a rise in the collection and analysis of choice-process data, such as team communication transcripts. The main purpose of this paper is to understand whether the collection of team communication data influences how individuals reason and behave as they enter the team deliberation process, i.e. before any communication exchange. Such an influence would imply that team setups have limited validity to speak to individual reasoning processes. Our treatment manipulations allow us to isolate the effects of (1) belonging to a team, (2) actively suggesting an action to the team partner, and (3) justifying the suggestion in a written text to the team partner. Across three different tasks, we find no systematic evidence of changed suggestions and altered individual sophistication due to changes in aspects (1)–(3) of our experimental design. We thus find no threat to said validity of team setups. In addition to investigating how the team setup affects individual behavior before communication, we also investigate the sophistication of decisions after the communication. We find that sophisticated strategies are more persuasive than unsophisticated strategies, especially when communication includes written justifications, thereby explaining why teams are more sophisticated and proving rich communication to be fruitful.

The highly popular belief that rent-control leads to an increase in the amount of affordable housing is in contradiction with ample empirical evidence and congruent theoretical explanations. It can therefore be qualified as a misconception. We present the results of a preregistered on-line experiment in which we study how to dispel this misconception using a refutational approach in two different formats, a video and a text. We find that the refutational video has a significantly higher positive impact on revising the misconception than a refutational text. This effect is driven by individuals who initially agreed with it and depart from it after the treatment. The refutational text, in turn, does not have a significant impact relative to a non-refutational text. Higher cognitive reflective ability is positively associated with revising beliefs in all interventions. Our research shows that visual communication effectively reduces the gap between scientific economic knowledge and the views of citizens.

This paper reports a series of experiments designed to evaluate how the advertised participation payment impacts participation rates in laboratory experiments. Our initial goal was to generate variation in the participation rate as a means to control for selection bias when evaluating treatment effects in common laboratory experiments. Initially, we varied the advertised participation payment to 1734 people from $\mathrm{\$}5$ to $\mathrm{\$}15$ using standard email recruitment procedures, but found no statistical evidence this impacted the participation rate. A second study increased the advertised payment up to $\mathrm{\$}100$. Here, we find marginally significant statistical evidence that the advertised participation payment affects the participation rate when payments are large. To combat skepticism of our results, we also conducted a third study in which verbal offers were made. Here, we found no statistically significant increase in participation rates when the participation payment increased from $\mathrm{\$}5$ to $\mathrm{\$}10$. Finally, we conducted an experiment similar to the first one at a separate university. We found no statistically significant increase in participation rates when the participation payment increased from $\mathrm{\$}7$ to $\mathrm{\$}15$. The combined results from our four experiments suggest moderate variation in the advertised participation payment from standard levels has little impact on participation rates in typical laboratory experiments. Rather, generating useful variation in participation rates likely requires much larger participation payments and/or larger potential subject pools than are common in laboratory experiments.

Gallice and Monzón (Econ J 129(621):2137–2154, 2019) present present a natural environment that sustains full co-operation in one-shot social dilemmas among a finite number of self-interested agents. They demonstrate that in a sequential public goods game, where agents lack knowledge of their position in the sequence but can observe some predecessors’ actions, full contribution emerges in equilibrium due to agents’ incentive to induce potential successors to follow suit. In this study, we aim to test the theoretical predictions of this model through an economic experiment. We conducted three treatments, varying the amount of information about past actions that a subject can observe, as well as their positional awareness. Through rigorous structural econometric analysis, we found that approximately 25% of the subjects behaved in line with the theoretical predictions. However, we also observed the presence of alternative behavioural types among the remaining subjects. The majority were classified as conditional co-operators, showing a willingness to cooperate based on others’ actions. Some subjects exhibited altruistic tendencies, while only a small minority engaged in free-riding behaviour.

We report laboratory evidence on the voluntary provision of threshold public goods when the exact location of the threshold is not known. Our experimental treatments explicitly compare two prominent technologies, summation, and weakest link. Uncertainty in threshold location is particularly detrimental to threshold attainment under weakest link, where low contributions by one subject cannot be compensated by others. In contrast, threshold uncertainty does not affect contributions under summation. We demonstrate that non-binding pledges improve the chances of threshold attainment under both technologies, particularly under weakest link.

Most multilateral bargaining models predict bargaining power to emanate from pivotality—a party’s ability to form different majority coalitions. However, this prediction contrasts with the empirical observation that negotiations in parliamentary democracies typically result in payoffs proportional to parties’ vote shares. Proportionate profits suggest equality rather than pivotality drives results. We design an experiment to study when bargaining outcomes reflect pivotality versus proportionality. We find that commitment timing is a crucial institutional factor moderating bargaining power. Payoffs are close to proportional if bargainers can commit to majority coalitions before committing to how to share the pie, but pivotality dictates outcomes otherwise. Our results help explain Gamson’s Law, a long-standing puzzle in the legislative bargaining literature.

We conduct a field experiment with Amazon Mechanical Turk (“AMT”) workers to causally assess the effect of introducing a control mechanism in an existing work relationship on workers’ performance on tasks of varying difficulty. We find that introducing control significantly reduces performance. This reduction occurs primarily on challenging tasks, while performance on simple tasks is unaffected. The negative effects are primarily driven by workers who exhibit non-pecuniary motivation in the absence of control. Our results show that there are adverse effects of control, and they suggest that these adverse effects are of particular concern to firms that rely on high performance on challenging tasks.

Teamwork has become increasingly important in modern organizations and the labor market. Yet, little is known about the role of self-confidence in teamwork. In this paper, we present evidence from a laboratory experiment using a team effort task. Effort and ability are complements and there are synergies between teammates’ efforts. We exogenously manipulate subjects’ self-confidence about their ability using easy and hard general knowledge quizzes. We find that overconfidence leads to more effort, less free riding, and higher team revenue. This finding is primarily due to a direct effect of overconfidence on own effort provision, while there is no evidence that subjects strategically respond to the teammate’s overconfidence.

Pledges are ubiquitous in charitable giving, but they are often reneged upon. To investigate whether adding the phrase “I swear” to pledge language can reduce pledge reneging, we conduct a series of experiments in the context of online fundraising. We find that including “I swear” at the beginning of the pledge language significantly increases immediate giving and pledge fulfillment, with more individuals switching from pledging to giving immediately. We also observe individual heterogeneity in moral identity: Our findings are present among individuals with low moral identity, but not among those with high moral identity. Our paper presents a simple and no-cost strategy for increasing the effectiveness of pledges in online fundraising.

We study how people solve the optimal stopping problem of buying an airline ticket. Over a set of problems, people were given 12 opportunities to buy a ticket ranging from 12 months before travel to 1 day before. The distributions from which prices were sampled changed over time, following patterns observed in industry analysis of flight ticket pricing. We characterize the optimal decision process in terms of a set of thresholds that set the maximum purchase price for each time point. In a behavioral analysis, we find that the average price people pay is above the optimal, that there is little evidence people learn over the sequence of problems, but that there are likely significant individual differences in the way people make decisions. In a model-based analysis, we propose a set of nine possible decision strategies, based on how purchasing probabilities change according to time and the price of the ticket. Using Bayesian latent-mixture methods, we infer the strategies used by the participants, finding that some use purely time-based strategies, while others also attend to the price of the tickets. We conclude by noting the limitations in the strategies as accounts of people's decision making, highlighting the need to consider sequential effects and other context effects on purchasing behavior.

Disappointment aversion has been suggested as an explanation for non-truthful rankings in strategy-proof school-choice matching mechanisms. We test this hypothesis using a novel experimental design that eliminates important alternative causes of non-truthful rankings. The design uses a simple contingent choice task with only two possible outcomes. Between two treatments, we manipulate the possibility for disappointment aversion to have an effect on ranking. We find a small and statistically marginally significant treatment effect in the direction predicted by disappointment aversion. We therefore conclude that disappointment aversion is a minor contributor to non-truthful rankings in strategy-proof school-choice matching mechanisms.

This study investigates the mechanisms driving the effectiveness of free-form communication in promoting cooperation within a sequential social dilemma game. We hypothesize that the self-constructing nature of free-form communication enhances the sincerity of messages and increases the disutility of dishonoring promises. Our experimental results demonstrate that free-form messages outperform both restricted promises and treatments where subjects select and use previously constructed free-form messages. Interestingly, we find that selected free-form messages and restricted promises achieve similar levels of cooperation. We observe that free-form messages with higher sincerity increase the likelihood of high-price and high-quality choices, thereby promoting cooperation. These messages frequently include promises and honesty, while threats do not promote cooperation. Our findings emphasize the crucial role of the self-constructed nature of free-form messages in promoting cooperation, exceeding the impact of message content compared to restricted communication protocols.

Research from the last four decades suggests that fairness plays an important role in economic transactions. However, the vast majority of this research investigates behavior in an environment where agents are fully informed. We develop a new experimental paradigm—nesting the widely used ultimatum game—and find that fairness has less impact on outcomes when agents are less informed. As we remove information, offers become less generous and unfair offers are more likely to be accepted.

We investigate the role of visual attention in risky choice in a rich experimental dataset that includes eye-tracking data. We first show that attention is not reducible to individual and contextual variables, which explain only 20% of attentional variation. We then decompose attentional variation into individual average attention and trial-wise deviations of attention to capture different cognitive processes. Individual average attention varies by individual, and can proxy for individual preferences or goals (as in models of “rational inattention” or goal-directed attention). Trial-wise deviations of attention vary within subjects and depend on contextual factors (as in models of “salience” or stimulus-driven attention). We find that both types of attention predict behavior: average individual attention patterns are correlated with individual levels of loss aversion and capture part of this individual heterogeneity. Adding trial-wise deviations of attention further improves model fit. Our results show that a decomposition of attention into individual average attention and trial-wise deviations of attention can capture separable cognitive components of decision making and provides a useful tool for economists and researchers from related fields interested in decision-making and attention.