Most widely held works by Armin Falk
Charitable giving as a gift exchange : evidence from a field experiment by Armin Falk ( Book )
11 editions published between 2003 and 2004 in 3 languages and held by 39 libraries worldwide
"This study reports data from a field experiment that was conducted to investigate the relevance of gift-exchange for charitable giving. Roughly 10,000 solicitation letters were sent to potential donors in the experiment. One third of the letters contained no gift, one third contained a small gift and one third contained a large gift. Whether a potential donor received a letter with or without a gift was randomly determined. We observe strong and systematic effects from including gifts. Compared to the no gift condition, the relative frequency of donations increased by 17 percent if a small gift was included and by 75 percent for a large gift. Consequently, including gifts was highly profitable for the charitable organization. The contribution of this paper is twofold: first, it shows that gift-exchange is important for charitable giving, in addition to the warm-glow motive. Second, the paper confirms the economic relevance of reciprocity by using field data. This extends the current body of research on reciprocity, which is almost exclusively confined to laboratory studies"--Forschungsinstitut zur Zukunft der Arbeit web site.
Institutions and contract enforcement by Armin Falk ( Book )
9 editions published in 2008 in English and held by 37 libraries worldwide
We provide evidence on how two important types of institutions -- dismissal barriers, and bonus pay -- affect contract enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a strong negative impact on worker performance, and market efficiency, by interfering with firms' use of firing threat as an incentive device. Dismissal barriers also distort the dynamics of worker effort levels over time, cause firms to rely more on the spot market for labor, and create a distribution of relationship lengths in the market that is more extreme, with more very short and more very long relationships. The introduction of a bonus pay option dramatically changes the market outcome. Firms are observed to substitute bonus pay for threat of firing as an incentive device, almost entirely offsetting the negative incentive and efficiency effects of dismissal barriers. Nevertheless, contract enforcement behavior remains fundamentally changed, because the option to pay bonuses causes firms to rely less on long-term relationships. Our results show that market outcomes are the result of a complex interplay between contract enforcement policies and the institutions in which they are embedded.
Lab experiments are a major source of knowledge in the social sciences by Armin Falk ( Book )
8 editions published between 2009 and 2010 in English and held by 30 libraries worldwide
Laboratory experiments are a widely used methodology for advancing causal knowledge in the physical and life sciences. With the exception of psychology, the adoption of laboratory experiments has been much slower in the social sciences, although during the last two decades, the use of lab experiments has accelerated. Nonetheless, there remains considerable resistance among social scientists who argue that lab experiments lack 'realism' and 'generalizability'. In this article we discuss the advantages and limitations of laboratory social science experiments by comparing them to research based on non-experimental data and to field experiments. We argue that many recent objections against lab experiments are misguided and that even more lab experiments should be conducted -- CESifo website.
Did We Overestimate the Role of Social Preferences? The Case of Self-Selected Student Samples by Armin Falk ( Book )
8 editions published between 2010 and 2011 in English and German and held by 30 libraries worldwide
Social preference research has received considerable attention among economists in recent years. However, the empirical foundation of social preferences is largely based on laboratory experiments with self-selected students as participants. This is potentially problematic as students participating in experiments may behave systematically different than non-participating students or non-students. In this paper we empirically investigate whether laboratory experiments with student samples misrepresent the importance of social preferences. Our first study shows that students who exhibit stronger prosocial inclinations in an unrelated field donation are not more likely to participate in experiments. This suggests that self-selection of more prosocial students into experiments is not a major issue. Our second study compares behavior of students and the general population in a trust experiment. We find very similar behavioral patterns for the two groups. If anything, the level of reciprocation seems higher among non-students suggesting that results from student samples might be seen as a lower bound for the importance of prosocial behavior.
A theory of reciprocity by Armin Falk ( Book )
11 editions published between 1999 and 2001 in English and No Linguistic content and held by 30 libraries worldwide
This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental games. Among them are the ultimatum game, the gift-exchange game, the prisoners dilemma, and the public goods games. Furthermore, the theory explains xhy the same consequences trigger different reciprocal responses in different environments. Finally the theory explains why in bilateral interactions outcomes tend to be "fair" whereas in competitive markets even extremly unfair distributions may arise.
Appropriating the commons a theoretical explanation by Armin Falk ( Book )
8 editions published between 2000 and 2001 in English and No Linguistic content and held by 29 libraries worldwide
Psychological foundations of incentives by Ernst Fehr ( Book )
9 editions published between 2001 and 2002 in English and held by 27 libraries worldwide
During the last two decades economists have made much progress in understanding incentives, contracts and organisations. Yet, they constrained their attention to a very narrow and empirically questionable view of human motivation. The purpose of this paper is to show that this narrow view of human motivation may severely limit understanding the determinants and effects of incentives. Economists may fail to understand the levels and the changes in behaviour if they neglect motives like the desire to reciprocate or the desire to avoid social disapproval. We show that monetary incentives may backfire and reduce the performance of agents or their compliance with rules. In addition, these motives may generate very powerful incentives themselves.
Am Staat vorbei : Transparenz, Fairness und Partizipation kontra Steuerhinterziehung ( Book )
1 edition published in 2004 in German and held by 25 libraries worldwide
Choosing the joneses: endogenous goals and reference standards by Armin Falk ( )
4 editions published in 2004 in English and German and held by 20 libraries worldwide
Are risk aversion and impatience related to cognitive ability ( )
5 editions published between 2007 and 2009 in English and held by 19 libraries worldwide
Cardiovascular consequences of unfair pay ( Book )
5 editions published in 2011 in English and held by 19 libraries worldwide
This paper investigates physiological responses to perceptions of unfair pay. In a simple principal agent experiment agents produce revenue by working on a tedious task. Principals decide how this revenue is allocated between themselves and their agents. In this environment unfairness can arise if an agent's reward expectation is not met. Throughout the experiment we record agents' heart rate variability. Our findings provide evidence of a link between perceived unfairness and heart rate variability. The latter is an indicator of stress-related impaired cardiac autonomic control, which has been shown to predict coronary heart diseases in the long run. Establishing a causal link between unfair pay and heart rate variability therefore uncovers a mechanism of how perceptions of unfairness can adversely affect cardiovascular health. We further test potential adverse health effects of unfair pay using data from a large representative data set. Complementary to our experimental findings we find a strong and highly significant association between health outcomes, in particular cardiovascular health, and fairness of pay.
The success of job applications: a new approach to program evaluation by Armin Falk ( )
3 editions published between 2002 and 2004 in English and German and held by 19 libraries worldwide
Reference points and effort provision ( )
3 editions published in 2009 in English and held by 18 libraries worldwide
A key open question for theories of reference-dependent preferences is what determines the reference point. One candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment, we manipulate the rational expectations of subjects and check whether this manipulation influences their effort provision. We find that effort provision is significantly different between treatments in the way predicted by models of expectation-based reference-dependent preferences: if expectations are high, subjects work longer and earn more money than if expectations are low.
Unemployment and right-wing extremist crime by Armin Falk ( Book )
13 editions published between 2004 and 2009 in English and No Linguistic content and held by 17 libraries worldwide
It is frequently argued that unemployment plays a crucial role for the occurrence of right-wing extremist crimes. We empirically test this hypothesis using data from Germany. We find that right-wing criminal activities occur more frequently when unemployment is high. The big difference in right-wing crime between East and West German states can mostly be attributed to differences in unemployment. This finding reinforces the importance of unemployment as an explanatory factor for right-wing crime and questions explanations based solely on the different socialization in former communist East Germany and the liberal West German states.
It's all about connections : evidence on network formation by Armin Falk ( Book )
6 editions published in 2003 in English and No Linguistic content and held by 17 libraries worldwide
Discrimination and in-group favoritism in a citywide trust experiment ( )
2 editions published in 2007 in English and held by 16 libraries worldwide
Clean evidence on peer pressure by Armin Falk ( Book )
7 editions published in 2003 in English and No Linguistic content and held by 16 libraries worldwide
Living in two neighborhoods : social interactions in the LAB by Armin Falk ( Book )
7 editions published between 2003 and 2004 in English and held by 16 libraries worldwide
Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each subject simultaneously is a member of two randomly assigned and economically identical groups where only members ('neighbors') are different. In both groups subjects make contribution decisions to a public good. We speak of social interactions if the same subject at the same time makes group-specific contributions that depend on their respective neighbors' contribution. Our results are unambiguous evidence for social interactions. A majority of subjects is very strongly influenced by the contributions of their respective neighbors. Roughly ten percent exhibit no social interactions.
Reciprocity and wage formation by Armin Falk ( Book )
5 editions published between 1998 and 1999 in English and German and held by 16 libraries worldwide
The intergenerational transmission of risk and trust attitudes ( )
3 editions published between 2006 and 2008 in English and held by 16 libraries worldwide
Agency (Law) Antiquities Applications for positions Bonus system Business networks Conference proceedings Contracts Cooperation--Mathematical models Cost and standard of living Denmark Economics Employees--Dismissal of Fund raising Game theory Germany Gregory--IX,--Pope,--ca. 1170-1241 History Incentive (Psychology) Incentives in industry Incomplete contracts Industrial relations Interpersonal relations--Mathematical models Job hunting Labor contract Labor laws and legislation--Economic aspects Labor market Labor market--Econometric models Labor productivity Markets--Mathematical models Merit pay Minimum wage Neighborhoods--Mathematical models Occupational training--Evaluation Peer pressure Performance standards Quality of life Right-wing extremists Science--Experiments Social norms Social sciences Social status Sociology, Urban--Mathematical models Tax evasion Taxpayer compliance Trust Turkey--Istanbul Unemployment Unemployment and crime Unemployment--Social aspects Welfare recipients--Employment
Falk, A. 1968-