Judd B. Kessler

For a current list of my publications and working papers, please visit my personal website.

• Erika Kirgios, Edward Chang, Emma E. Levine, Katherine L. Milkman, Judd B. Kessler (2020), Forgoing Earned Incentives to Signal Pure Motives, Proceedings of the National Academy of Sciences, 117 (29), pp. 16891-16897. Abstract

  Financial incentives can spark behavior change but often damage recipients’ self-image. We designed and tested an intervention that allows organizations and individuals to resolve this tension. We motivated actors with financial rewards and then gave them the opportunity to forgo those rewards to signal their past actions were intrinsically motivated. We propose that actors who forgo financial rewards engage in “motivation laundering,” passing up payments earned for an incentivized action to retroactively signal that their motivations were intrinsic. Our intervention has the potential to leave organizations and incentivized individuals better off: Financial rewards help actors build better habits, and motivation laundering allows them to boost their self-image, while giving organizations opportunities to lower incentive program costs.

• Corinne Low, Judd B. Kessler, Colin Sullivan (2019), Incentivized Resume Rating: Eliciting Employer Preferences without Deception, American Economic Review, 109 (11). Abstract

  We introduce a new experimental paradigm to evaluate employer preferences, called Incentivized Resume Rating (IRR). Employers evaluate resumes they know to be hypothetical in order to be matched with real job seekers, preserving incentives while avoiding the deception necessary in audit studies. We deploy IRR with employers recruiting college seniors from a prestigious school, randomizing human capital characteristics and demographics of hypothetical candidates. We measure both employer preferences for candidates and employer beliefs about the likelihood candidates will accept job offers, avoiding a typical confound in audit studies. We discuss the costs, benefits, and future applications of this new methodology.

• Judd B. Kessler, Katherine L. Milkman, C. Yiwei Zhang (2019), Getting the Rich and Powerful to Give, Management Science, 65 (9), pp. 4049-4062. Abstract

  What motivates the rich and powerful to exhibit generosity? We explore this important question in a large field experiment. We solicit donations from 32,174 alumni of an Ivy League university, including thousands of rich and powerful alumni. Consistent with past psychology research, we find that the rich and powerful respond dramatically, and differently than others, to being given a sense of agency over the use of donated funds.Gifts from rich and powerful alumni increase by 100%–350% when they are given a sense of agency. This response arises primarily on the intensive margin with no effect on the likelihood of donating. Results suggest that motivating the rich and powerful to act may require tailored interventions.

• Jennie Huang, Judd B. Kessler, Muriel Niederle (Draft), The Value of Information and the Role of Fairness in Bargaining. Abstract

  Research from the last three decades suggests that fairness plays an important role in economic transactions. However, the vast majority of this evidence investigates behavior in a full-information environment. We develop a new experimental paradigm—which nests the widely used Ultimatum Game—to show that the role of fairness in economic transactions depends fundamentally on the information structure. We find that when transacting agents are less informed, inequality increases. In the absence of information, proposers give less-fair offers and report believing that responders will accept them. Responders do, in fact, accept less-fair offers when proposers are informed, suggesting that responders are concerned about their social image or proposers’ intentions.

• Amanda Chuan, Judd B. Kessler, Katherine L. Milkman (2018), A Field Study of Charitable Giving Reveals that Reciprocity Decays over Time, Proceedings of the National Academy of Sciences, 155 (8), pp. 1766-1771. Abstract

  We examine how reciprocity changes over time by studying a large quasi-experiment in the field. Specifically, we analyze administrative data from a university hospital system. The data include information about over 18,000 donation requests made by the hospital system via mail to a set of its former patients in the four months following their first hospital visit. We exploit quasi-experimental variation in the timing of solicitation mailings relative to patient hospital visits and find that an extra 30-day delay between the provision of medical care and a donation solicitation decreases the likelihood of a donation by 30%. Our findings have important implications for models of economic behavior, which currently fail to incorporate reciprocity’s sensitivity to time. The fact that reciprocal behavior decays rapidly as time passes also suggests the importance of capitalizing quickly on opportunities to benefit from a quid pro quo.

  Description

  Datasets in "A Field Study of Charitable Giving Reveals that Reciprocity Decays over Time"

    Dataset regression_deid is the deidentified dataset used to create main and supplemental regression tables (Fig. 1, Tables 3,  S1-S3, S5-S7, and S10). Dataset regression_deidexp is the deidentified dataset used to create regression tables exploring the role of patient experience (tables S8 and S9). Dataset sumstat_deid is the deidentified dataset used to create summary statistics tables (Tables 1, 2, S2, and S4).
  Related
  Links

  Radio interview with Knowledge@Wharton
• Ezekiel J. Emanuel, P. Ubel, Judd B. Kessler, G. Meyer, R. Muller, Amol Navathe, P. Patel, R. Pearl, MB Rosenthal, L. Sacks, AP Sen, P. Sherman, Kevin Volpp (2015), Using Behavioral Economics to Design Physician Incentives that Deliver High Value Care, Annals of Internal Medicine, 24 (), pp. 1-7.
• Judd B. Kessler and Alvin Roth (2014), Getting More Organs for Transplantation, American Economic Review, Papers and Proceedings.
• Judd B. Kessler and Stephan Meier (2014), Learning from (Failed) Replications: Cognitive Load Manipulations and Charitable Giving, Journal of Economic Behavior and Organization.
• Judd B. Kessler and C. Yiwei Zhang (2014), Behavioral Economics and Health, Oxford Textbook of Public Health.
• Judd B. Kessler and Alvin Roth (2014), Organ Donation Loopholes Undermine Giving: An Experiment Motivated By Priority Loopholes in Israel, Journal of Public Economics.
• All Research from Judd B. Kessler »

Spring 2019, 2020, 2021, 2022 – BEPP 220/620: “Behavioral Economics, Markets and Public Policy” (Undergraduate and MBA)

Spring 2019, Fall 2021 – BEPP 904 “Experimental Economics” (PhD)

Fall 2012, 2013, 2015, 2017 – MGEC 611/612: “Managerial Economics” (MBA)

Spring 2012 – BPUB 250: “Managerial Economics” (Undergraduate)

Current Courses

• BEPP0001 - Introduction To Behavioral Economics

  Governments and firms set policy in a world of behavioral agents. This course will present economic approaches to these policy problems when individuals act in behavioral ways. Readings will be newspaper articles that will be discussed in class. Assignments -- two problem sets and an exam -- will include qualitative and quantitative analysis.

  BEPP0001001 ( Syllabus )

• BEPP9040 - Experimental Economics

  This course will help prepare you to run your own economics laboratory and field experiments. Experimental methods have been widely adopted by economists to develop new insights, and some economic theories and hypotheses are uniquely well-suited for testing with experimental tools and data. Achieving high internal and external validity requires careful experimental design. Substantive areas of application in the course will include market equilibrium, asset bubbles, learning in games, public good provision, and labor market relationships. Additional topics may include biases in individual decision-making; field experiments in development economics; and happiness, neuroeconomics, and behavioral/experimental welfare economics. Economists' typical interests in strategic and market-based interactions raise particular methodological challenges and opportunities.

  BEPP9040401 ( Syllabus )

• OIDD9040 - Experimental Economics

  This course will help prepare you to run your own economics laboratory and field experiments. Experimental methods have been widely adopted by economists to develop new insights, and some economic theories and hypotheses are uniquely well-suited for testing with experimental tools and data. Achieving high internal and external validity requires careful experimental design. Substantive areas of application in the course will include market equilibrium, asset bubbles, learning in games, public good provision, and labor market relationships. Additional topics may include biases in individual decision-making; field experiments in development economics; and happiness, neuroeconomics, and behavioral/experimental welfare economics. Economists' typical interests in strategic and market-based interactions raise particular methodological challenges and opportunities.

  OIDD9040401 ( Syllabus )

Past Courses

• BEPP0001 - Intro Behavioral Economics

  Governments and firms set policy in a world of behavioral agents. This course will present economic approaches to these policy problems when individuals act in behavioral ways. Readings will be newspaper articles that will be discussed in class. Assignments -- two problem sets and an exam -- will include qualitative and quantitative analysis.

• BEPP2200 - Behavioral Economics

  Behavioral economics has revealed a variety of systematic ways in which people deviate from being perfectly selfish, rational, optimizing agents. These findings have important implications for government policy and firm behavior. This course will explore these implications by answering two main questions: (1) what does behavorial economics imply for when and how the government should intervene in markets? (2) What does behavioral economics imply for firms' pricing and production decisions? The course will present the standard economic approaches to answering these questions and then explore how answers change when we consider that people act in behavioral ways. Towards the end of the course, we will investigate specific policy questions, allowing us to debate solutions while hearing from policy makers operating in a world of behavioral agents.

• BEPP2990 - Independent Study

• BEPP6200 - Behavioral Econ, Markets

  Behavioral economics has revealed a variety of systematic ways in which people deviate from being perfectly selfish, rational, optimizing agents. These findings have important implications for government policy and firm behavior. This course will explore these implications by answering two main questions: (1) what does behavioral economics imply for when and how the government should intervene in markets? (2) What does behavioral economics imply for firms' pricing and production decisions? The course will present the standard economic approaches to answering these questions and then explore how answers change when we consider that people act in behavioral ways. Towards the end of the course, we will investigate specific policy questions, allowing us to debate solutions while hearing from policy makers operating in a world of behavioral agents.

• BEPP9040 - Experimental Economics

  This course will help prepare you to run your own economics laboratory and field experiments. Experimental methods have been widely adopted by economists to develop new insights, and some economic theories and hypotheses are uniquely well-suited for testing with experimental tools and data. Achieving high internal and external validity requires careful experimental design. Substantive areas of application in the course will include market equilibrium, asset bubbles, learning in games, public good provision, and labor market relationships. Additional topics may include biases in individual decision-making; field experiments in development economics; and happiness, neuroeconomics, and behavioral/experimental welfare economics. Economists' typical interests in strategic and market-based interactions raise particular methodological challenges and opportunities.

• MGEC6110 - Microeconomics For Manag

  This course establishes the micro-economic foundations for understanding business decision-making. The course will cover consumer theory and market demand under full information, market equilibrium and government intervention, production theory and cost optimization, producing in perfectly competitive and monopoly markets, vertical relations, and game theory, including simultaneous, sequential, and infinitely repeated games. Students are expected to have mastered these materials before enrolling in the second quarter course: Microeconomics for Managers: Advanced Applications.

• MGEC6120 - Microecon For Mgr - Adv.

  This course will cover the economic foundations of business strategy and decision-making in market environments with other strategic actors and less than full information, as well as advanced pricing strategies. Topics include oligopoly models of market competition, creation, and protection, sophisticated pricing strategies for consumers with different valuations or consumers who buy multiple units (e.g. price discrimination, bundling, two-part tariffs), strategies for managing risk and making decisions under uncertainty, asymmetric information and its consequences for markets, and finally moral hazard and principle-agent theory with application to incentive contacts.

• OIDD9040 - Experimental Economics

  This course will help prepare you to run your own economics laboratory and field experiments. Experimental methods have been widely adopted by economists to develop new insights, and some economic theories and hypotheses are uniquely well-suited for testing with experimental tools and data. Achieving high internal and external validity requires careful experimental design. Substantive areas of application in the course will include market equilibrium, asset bubbles, learning in games, public good provision, and labor market relationships. Additional topics may include biases in individual decision-making; field experiments in development economics; and happiness, neuroeconomics, and behavioral/experimental welfare economics. Economists' typical interests in strategic and market-based interactions raise particular methodological challenges and opportunities.

• Vernon L. Smith Ascending Scholar Prize, 2021
• Named "30 under 30" in Law and Policy by Forbes Magazine, 2012
• Robert Wood Johnson Foundation and the Donaghue Foundation Pioneer Portfolio Grant Recipient, 2012 Description

  Project Title: “Using Behavioral Economics to Promote Medication Adherence and Habit Formation” (with Dmitry Taubinsky and Eric Zwick)

  Total Received for Project: $150,400

  • Robert Wood Johnson Foundation’s Pioneer Portfolio and the Donaghue Foundation ($100,000)
  • Sub-Award from Laibson/Madrian Grant ($30,000)
  • Lab for Economic Applications and Policy at Harvard ($12,000)
  • Penn-CMU Roybal Grant ($8,400)
• Roger Martin Award for Excellence in Business Economics, Harvard Business School, 2011
• National Science Foundation Graduate Research Fellowship, 2005

• The job search, AM New York - 03/03/2016
• One way to boost organ donations: Just keep asking, The Washington Post - 08/18/2014
• The Power of Broadcasting Benevolence, Wharton Blog Network - 07/31/2012
• Facebook’s Organ Donation Success Needs Follow-Up, Bloomberg - 05/07/2012
• 30 Under 30 - Law & Policy, Forbes - 12/19/2011
• Researchers look to optimize donations in the United States, The Daily Pennsylvanian - 10/24/2011
• Something for the weekend, Financial Times - 10/21/2011
• Pay to Play: Should Registered Organ Donors Get Priority as Recipients?, Freakonomics Blog - 08/23/2011

Knowledge @ Wharton

• How Dynamic Electricity Pricing Can Improve Market Efficiency, Knowledge @ Wharton - 11/12/2024
• Is Algorithmic Management Too Controlling?, Knowledge @ Wharton - 11/12/2024
• The Hidden Cost of AI Energy Consumption, Knowledge @ Wharton - 11/12/2024
• Charitable and Political Giving | Pinar Yildirim, Knowledge @ Wharton - 11/12/2024
• The Future of Banking, Knowledge @ Wharton - 11/11/2024
• Election Statistics, Knowledge @ Wharton - 11/06/2024
• Robots Are Taking Over Low-skilled Jobs — and Changing Votes, Knowledge @ Wharton - 11/05/2024
• Crypto Politics: Liberals’ and Conservatives’ Confidence in Cryptocurrencies, Knowledge @ Wharton - 11/05/2024
• Leadership and Elections | Mike Useem, Knowledge @ Wharton - 11/05/2024
• Automation Is Harming Low-skilled Workers and Possibly Their Voting Preferences, Knowledge @ Wharton - 11/01/2024