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Solomonic Separation: Risk Decisions as Productivity Indicators
(John F. Kennedy School of Government, Harvard University, 2012)
A principal provides budgets to agents (e.g., divisions of a firm or the principal's children) whose expenditures provide her benefits, either materially or because of altruism. Only agents know their potential to generate ...
Variable Temptations and Black Mark Reputations
(John F. Kennedy School of Government, Harvard University, 2012)
In a world of imperfect information, reputations often guide the sequential decisions to trust and to reward trust. We consider two-player situations, where the players meet but once. One player – the truster – decides ...
Social Class and (Un)ethical Behavior: Evidence from a Large Population Sample
(John F. Kennedy School of Government, Harvard University, 2012)
We test whether and how membership in the upper class affects ethical behavior in a large representative population sample. Using objective measures of socioeconomic status to define class, we find no evidence of a general ...
Assessing Uncertainty in Intelligence
(John F. Kennedy School of Government, Harvard University, 2012)
This article addresses the challenge of managing uncertainty when producing estimative intelligence. Much of the theory and practice of estimative intelligence aims to eliminate or reduce uncertainty, but this is often ...
The Disgust-Promotes-Disposal Effect
(Springer, 2012)
Individuals tend toward status quo bias: preferring existing options over
new ones. There is a countervailing phenomenon: Humans naturally dispose of
objects that disgust them, such as foul-smelling food. But what if the ...
Generic Script Share and the Price of Brand-Name Drugs: The Role of Consumer Choice
(2012-01-26)
Pharmaceutical expenditures have grown rapidly in recent decades, and now total nearly 10% of health care costs. Generic drug utilization has risen substantially alongside, from 19% of scripts in 1984 to 47% in 2001, thus ...