Research

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Abstract: In sequential interactions, both the agent’s intention and the outcome of his choice may influence the principal’s action. While outcomes are typically observable, intentions are more likely to be hidden, leaving potential wiggle room for the principal when deciding on a reciprocating action. We employ a controlled experiment to investigate how intentions and outcome affect the principal’s actions and whether principals use hidden information as an excuse to behave more selfishly. We find that principals react mainly to the intention of the agent. When intentions are not revealed by default, principals tend to select into information based on their inclination to behave more prosocially. While information avoidance is frequent and selfishness is higher with hidden information, we do not find evidence of a strategic exploitation of moral wiggle room.

Available as CESifo Working Paper No. 10572 

Abstract: How do men and women differ in their persistence after experiencing failure in a competitive environment? We tackle this question by combining a large online experiment (N=2,086) with machine learning. We find that when losing is unequivocally due to merit, both men and women exhibit a significant decrease in subsequent tournament entry. However, when the prior tournament is unfair, i.e., a loss is no longer necessarily based on merit, women are more discouraged than men. These results suggest that transparent meritocratic criteria may play a key role in preventing women from falling behind after experiencing a loss. 

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Abstract:  Are gender gaps in economic behavior and labor market outcomes associated with biological sex, or with gender-typical traits? Using an online U.S. sample and machine learning, we develop and validate a gender typicality measure capturing masculinity and femininity as separate dimensions. We show that confidence, competitiveness, and risk-taking are associated with masculinity, whereas altruism and equality and efficiency concerns are associated with femininity. Gender typicality also predicts labor market outcomes: masculinity is associated with higher income, managerial positions, performance-based pay, and willingness to negotiate. By leveraging latent heterogeneity, our framework offers a new empirical lens for analyzing gender differences.