We show that the disposition to focus on favorable or unfavorable outcomes of risky situations affects willingness to take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is strongly
BAMS is a joint seminar by the DIW Berlin, the Hertie School of Governance, the HU Berlin and the WZB.
This paper experimentally investigates how concerns for social approval relate to intrinsic motivations to purchase ethically. Participants state their willingness-to-pay for both a fair trade and a conventional chocolate bar in private or publicly.
Whether pro-social preferences identified in economic laboratories survive in natural market contexts is an important and contested issue. We investigate how fairness in a laboratory experiment framed explicitly as a market exchange relates to ...
This paper analyses financial literacy and financial behavior of middle class people living an urban Asian economy. Other than most papers on financial literacy that focus on people in developed countries, we surveyed people living Bangkok. Using ...
This paper analyzes optimal product lines when consumers differ both in their taste for, quality and in their desire for social image. The market outcome features partial pooling and, product differentiation that is not driven by heterogeneous ...
(joint with André Stenzel and Peter Schmidt) We consider dynamic price-setting in the presence of rating systems and asymmetric information about product quality. We provide a framework in which the price charged determines the ...
Although households in developing and emerging countries are relatively poor, there is potential to save. For example, one study estimates that up to 8.1% of a poor household’s budget in such countries is spent on so-called temptation goods, like .
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