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This paper experimentally examines image motivation—the desire to be liked and well-regarded by others—as a driver in prosocial behavior (doing good), and asks whether extrinsic monetary incentives (doing well) have a detrimental effect on proso-cial behavior due to crowding out of image motivation. By definition, image depends on one's behavior being(More)
There is a longstanding concern that material incentives might undermine prosocial motivation, leading to a decrease in blood donations rather than an increase. This paper provides an empirical test of how material incentives affect blood donations in a large‐scale field experiment spanning three months and involving more than 10,000 previous donors. We(More)
Almost all jobs require a combination of cognitive effort and labor effort. This paper focuses on the effect that competitive incentive schemes have on the chosen combination of these two types of efforts. We use an experimental approach to show that competitive incentives may induce agents to work harder but not necessarily smarter. This effect was(More)
The paper introduces a new allocation game, related to Blotto games: each tennis coach assigns his four different skilled players to four positions, and then each team plays all other teams in the tournament. The winning team is the one with the highest total score. The set of equilibria is characterized and experimental behavior in variants of the game is(More)
Optimism bias is inconsistent with the independence of decision weights and payoffs found in models of choice under risk, such as expected utility theory and prospect theory. Hence, to explain the evidence suggesting that agents are optimistically biased, we propose an alternative model of risky choice, affective decision making, where decision(More)
The public phase of a capital campaign is typically launched with the announcement of a large seed donation. Andreoni (1998) argues that such a fundraising strategy may be particularly effective when funds are being raised for projects that have fixed production costs. The reason is that the introduction of fixed costs may give rise to both positive and(More)
We study experimentally a two-player game which we find ideal for investigating k-level reasoning. Each player requests an amount of money between 11 and 20 shekels. He receives the amount that he requests and if he requests exactly one shekel less than the other player, he receives an additional 20 shekels. The best response function in this game is(More)
We propose Keynesian utilities as a new class of non-expected utility functions representing the preferences of investors for optimism, defined as the composition of the investor's preferences for risk and her preferences for ambiguity. The optimism or pessimism of Keynesian utilities is determined by empirical proxies for risk and ambiguity. Bulls and(More)
The authors study the responses to several questions related to real estate that were added to the Michigan Survey of Consumers in July and August 2011. In particular, they asked about attitudes toward renting versus buying a home, about commuting, and about how much to spend on a mortgage. By matching the results to data (at the ZIP-code level) about(More)