Abstract This study shows that participants tend to remember an ambiguous, directional cue as biased towards stimuli associated with a high reward can be attained dishonestly. Participants saw eight digits presented in circular arrangement. On some trials, they were asked report the digit (“Target Digit”) indicated by jittery was slightly direction of another (“Second Cued Digit”), which either...

GP studied preferences over menus (sets) of alternatives. This implicitly means that the decision maker chooses a menu and then selects an alternative from the menu. Consider a compact metric space Z of prizes. Let ∆ be the set of all Borel probability measures over Z. An element in ∆ represents an alternative for (implicit) choice. Assume that ∆ is endowed with the topology of weak convergence...

This paper adopts the Gul and Pensendorfer self-control utility model to analyze an agent’s option exercise decision under uncertainty over an infinite horizon. The agent decides whether and when to do an irreversible activity. He is tempted by immediate gratification and suffers from self-control problems. The cost of self-control lowers the benefit from continuation or stopping and may erode ...

How do anticipated short-term costs affect the likelihood of engaging in an activity that has long-term benefits. Five studies investigated the factors that determine (a) how anticipated short-term costs elicit self-control efforts and (b) how self-control efforts eventually diminish the influence of short-term costs on behavior. The studies manipulated short-term costs (e.g., painful medical p...

Real world observations suggest that social norms of cooperation can be effective in overcoming social dilemmas such as the joint management of a common pool resource – but also that they can be subject to slow erosion and sudden collapse. We show that these patterns of erosion and 15 collapse emerge endogenously in a model of a closed community harvesting a renewable natural resource in which ...

Should cash transfer programmes restrict consumer choice? For example, should food assistance delivered in be restricted to and exclude temptation goods? Theoretically, restrictions induce (1) a substitution effect away from goods (2) negative wealth if transfers are extra-marginal the resale of is costly. The welfare impact on recipients negative. We test these predictions by exploiting natura...