In recent years, a large number of economic theories have evolved to explain people’s pro‐social behavior and the variation in their respective behavior. This paper surveys economic theories on pro‐social behavior and presents evidence—mainly from the field—testing these theories. In addition, the survey emphasizes that institutional environment might significantly interact ...

The use of social sanctions against behaviour which contradicts a set of informal rules is often an important element in the functioning of informal institutions in traditional societies. In the social sciences, sanctioning behaviour has often been explained in terms of the internalisation of norms that prescribe the sanctions (e.g. Parsons 1951) or the threat of new sanctions against those who...

Reference-Dependent Preferences and Loss Aversion: A Discrete Choice Experiment in the Health-Care Sector A Discrete Choice Experiment (DCE) in the health-care sector is used to test the loss aversion theory that is derived from reference-dependent preferences: The absolute subjective value of a deviation from a reference point is generally greater when the deviation represents a loss than when...

Models that admit only equilibrium solutions are prevalent in neoclassical economics and modern finance. Such solutions lack path dependence and evolve only in reaction to exogenous changes but, worryingly, the stability of these solutions and the nature of any non-equilibrium alternatives are rarely considered. We describe how such equilibrium solutions, and the modeling assumptions underpinni...

<p>This paper examined the effect of trade liberalization on domestic private investment in Nigeria from 1981 to 2020. To achieve this objective, secondary data investment, openness, exchange rate and interest were sourced statistical bulletin Nigeria’s apex bank. The Autoregressive Distributed Lag (ARDL) technique was used as main analytical tool. ARDL Bounds test revealed existence long...

The goal of this article is to properly define the economic phenomenon business cycle. text rooted in tradition Austrian School Economics, and methodological framework builds on concepts developed by Aristotle Thomas Aquinas. This leads development a few new concepts, such as re-interpretation «inflation» «deflation», re-introduction «imaginary goods» an important social phenomenon. core observ...

Self-Confidence and Search Standard search theory assumes that individuals know, with certainty, how they compare to competing searchers in terms of ability. In contrast, we hypothesize that searchers are uncertain about relative ability, with important implications for search behavior. We test our hypotheses in a laboratory experiment. The first main finding is that people are substantially un...

This experimental study investigates how behavior changes after punishment for an unkind action. It also studies how fairness perceptions affect the reaction to punishment and whether this effect is consistent across repeated play and role experiences. A repeated version of the power-to-take game is used. In this game, the proposer can make a claim on the resources of a responder. Then, the res...

Consumer installment lenders prefer to market “low monthly payments” and shroud interest rates. Why not voluntarily disclose rates? We show that when an interest rate is not disclosed, most consumers substantially underestimate it using information on the monthly payment, loan principal and maturity. This “fuzzy math” or “payment/interest bias” helps explain why lenders shroud rates and thereby...