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Building on previous research in economics and psychology, we propose that the costliness of initial prosocial behavior positively influences whether that behavior leads to consistent future behaviors. We suggest that costly prosocial behaviors serve as a signal of prosocial identity and that people subsequently behave in line with that self-perception. In(More)
We propose that individuals use anger strategically in interactions. We first show that in some environments angering people makes them more effective in competitions, whereas in others, anger makes them less effective. We then show that individuals anticipate these effects and strategically use the option to anger their opponents. In particular, they are(More)
We develop a dynamic model where people decide in the presence of moral constraints and test the predictions of the model through two experiments. Norm violations induce a temporal feeling of guilt that depreciates with time. Due to such fluctuations of guilt, people exhibit an endogenous temporal inconsistency in social preferences—a behavior we term(More)
There is growing interest in the use of loss contracts that offer performance incentives as upfront payments that employees can lose. Standard behavioral models predict a tradeoff in the use of loss contracts: employees will work harder under loss contracts than under gain contracts; but, anticipating loss aversion, they will prefer gain contracts to loss(More)
When investors sell one asset and quickly buy another, their trades are consistent with rolling the mental account into the new asset rather than closing it. When trading the new position, investors exhibit a disposition effect based on the amount invested in the original position that is no longer in the portfolio. On days when an investor buys and sells(More)
We conduct a controlled lab-field experiment to directly test the short-run spillover effects of one-off financial incentives in health. We consider how incentives affect effort in a physical activity task – and then how they spillover to subsequent eating behaviour. Compared to a control group, we find that low incentives increase effort and have little(More)
THE " RIGHT " MOMENT 2 Abstract This dissertation integrates literature on optimization in sequence­based search and literature on affective forecasting and investigates one reason why consumers may be mistakenly oversaving things they own for the " right " moment. An initial survey of real­world consumer behavior documents the importance of the right(More)
In a tedious real effort task, subjects know that their piece rate is either low or ten times higher. When subjects are informed about their piece rate realization, they adapt their performance. One third of subjects nevertheless forego this instrumental information when given the choice — and perform stunningly well. Agents who are uninformed regarding(More)