On the online auction site eBay, by convention, sellers do not ship goods to winning bidders until after they have received payment, so there is an opportunity for take advantage of bidders' trust. Realizing this, designers eBay created a system that relies on self-enforcement using reputation. Several recent studies found give little or no reward who better reputations. I show in fact, are strongly rewarded first few reports behaved honestly, but marginal returns additional severely decreasing.

Tests measuring and comparing educational achievement are an important policy tool.We experimentally show that offering students extrinsic incentives to put forth effort on such tests has differential effects across cultures.Offering U.S. students, who generally perform poorly assessments, improved performance substantially.In contrast, Shanghai top performers were not affected by incentives.Our findings suggest in the absence of incentives, ranking countries based low-stakes assessments is...

US students often rank poorly on standardized tests that estimate and compare educational achievements. We investigate whether this might reflect not only differences in ability but also effort the test. experimentally offer incentives to put forth two high schools four Shanghai schools. improve performance substantially response incentives, while students—who are top performers assessments—do not. These results raise possibility ranking countries based low-stakes assessments may ability,...

In-person tutoring programs can have large impacts on K-12 student achievement, but high program costs and limited local supply of tutors hampered scale-up. Online provided by volunteers potentially reach more students in need. We implemented a randomized pilot online that paired college with middle school students. estimate consistently positive statistically insignificant effects 0.07 standard deviations for math 0.04 reading. While our estimated are smaller than those many higher-dosage...

In Internet auctions, bidders alter their strategies as they gain market experience. While inexperienced bid the same high amounts regardless of seller’s reputation, experienced substantially less if seller has yet to establish a reputation and raise bids reports are filed that treated well in past. Experienced also wait until much closer end auction place bids, although it takes very little experience learn waiting submit one’s is superior strategy. ( JEL L14, L15, D83, D12)

ABSTRACT Prior research finds that controls induce cooperation among collaborators on a project increase trust, and this increased trust increases subsequent collaborators. We extend work by investigating how influence cooperative behavior in two settings. The first is an interactive setting where people together can benefit from each other's work. second non‐interactive do not directly but be observed. propose because are likely to engender greater reciprocity settings than settings, the...

Using data from CNet's Shopper's.com on prices and television characteristics, we use a quality-adjusted, hedonic price regression to test for the presence of indirect network effects in market. In 2009, broadcasters were mandated cease programme transmission using analog signals, convert digital signal transmission, necessitating changes reception mechanisms themselves, televisions. Digital permits offer greater programming variety, which makes televisions more valuable consumers....

In the "p-beauty" contest, contestants choose a number between zero and 100 winner is player who selected that closest to some fraction p of average chosen by group. The decision process in this game widely viewed as representative financial markets, because both require ability successfully anticipate react opinions faster than general public. This study examines how players are experienced with behave when competing against opponents they know have never seen before. results show correctly...

Previous studies have shown that people believe in the existence of "hot hand" effect: recent good performances make one more confident and lead to performances. This study examines hole-by-hole by four types professional golfers, which is perhaps ideal environment evaluate whether such an effect exists. The results show some evidence there both a hot hand cold (bad bad performances), but effects are not as strong them be, they different for players.

Prior research finds that controls induce cooperation among collaborators on a project increase trust, and this increased trust increases subsequent collaborators. We extend work by investigating how influence cooperative behavior in two settings. The first is an interactive setting where people together can benefit from each other’s work. second non-interactive do not directly, but be observed. propose because are likely to engender greater reciprocity settings than settings, the effect of...