Little is known about how healthy aging affects decision making. Here we studied the social economic decisions of younger (19–39 years) and older (75–100 adults depend on intentions agents outcomes their actions. Participants played role a responder (R) in an Ultimatum Game. A proposer (P) offered them specific division lottery tickets, which they could either accept or reject. Crucially, each ...

The purpose of the study is to extend further from the result studying overconfidence effects of CEOs on single deal of Malmendier and Tate (2008)’s article to study overconfidence effects of CEOs on multiple mergers and acquisitions. Based on the psychological and financial theories, the likelihood of overconfident CEOs acquiring a company is the net effect of two manifestations of overconfide...

I study a career concerns model in which the principal obtains information about the agent’s performance from an intermediary (evaluator), whose interests diverge from those of the principal. I show that, while the evaluator’s bias leads to ex-post suboptimal decisions regarding the agent (e.g., ine¢ cient promotion or dismissal), it incentivizes the agent to exert more e¤ort. As a result, gene...

Psychologists often model detection or discrimination decisions as being influenced by two components: perceptual discriminability and response bias. In the signal detection framework, these are estimated by d and β. Other, non-parametric parameters, A and B D , have also been proposed. This note provides the code to compute those parameters with the statistical software R (http://www.r-project...

We examine experimentally how Chief Executive Officers (CEOs) respond to incentives and how they provide incentives in situations requiring trust and trustworthiness. As a control we compare the behavior of CEOs with the behavior of students. We find that CEOs are considerably more trusting and exhibit more trustworthiness than students – thus reaching substantially higher efficiency levels tha...