One of Tyler Cowen’s recent books, probably “Discover your Inner Economist” discusses this in depth.
Some other experiments, possibly from K & T, show the same irrationalities among very poor third world residents when dealing with amounts of money that are very substantial to them.
I think Ariely covered some of these experiments in Upside of Irrationality, though the point he was trying to make is that too much incentive is counterproductive (decreases rational behavior).
One of Tyler Cowen’s recent books, probably “Discover your Inner Economist” discusses this in depth.
Some other experiments, possibly from K & T, show the same irrationalities among very poor third world residents when dealing with amounts of money that are very substantial to them.
I think Ariely covered some of these experiments in Upside of Irrationality, though the point he was trying to make is that too much incentive is counterproductive (decreases rational behavior).