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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 prosocial behavior due to crowding out of image motivation. By definition, image depends on one’s behavior being(More)
A¤ective decision-making is a strategic model of choice under risk and uncertainty where we posit two cognitive processes — the “rational” and the “emoitonal” process. Observed choice is the result of equilibirum in this intrapersonal game. As an example, we present applications of a¤ective decision-making in insurance markets, where the risk perceptions of(More)
The authors use a laboratory experiment to examine the impact of relative wages on labor supply. They test the hypothesis that, ceteris paribus, making a given wage high (low) relative to other wage levels will lead to an increase (decrease) in labor supply. They find that labor supply does respond significantly to relative pay, and in the expected(More)