[{"user_id":"97894","doi":"10.2139/ssrn.5378466","page":"107","series_title":"TRR 266 Accounting for Transparency Working Paper Series No. 203","_id":"61491","language":[{"iso":"eng"}],"publication_status":"published","date_updated":"2025-10-01T09:29:57Z","status":"public","year":"2025","title":"Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice ","author":[{"first_name":"Kay","last_name":"Blaufus","full_name":"Blaufus, Kay"},{"last_name":"Maiterth","first_name":"Ralf","full_name":"Maiterth, Ralf"},{"first_name":"Michael","last_name":"Milde","full_name":"Milde, Michael"},{"id":"530","full_name":"Sureth-Sloane, Caren","orcid":" 0000-0002-8183-5901","last_name":"Sureth-Sloane","first_name":"Caren"}],"jel":["H25","D91","D22"],"keyword":["Check-the-box","Legal Form","Tax Complexity","Tax Misperception","Behavioral Taxation","Tax Advice"],"type":"working_paper","department":[{"_id":"187"}],"date_created":"2025-10-01T09:26:32Z","abstract":[{"text":"We examine behavioral frictions in entrepreneurs’ tax planning when choosing between corporate and partnership taxation under a check-the-box rule. Using German tax return data, we show that only a small fraction of entrepreneurs opt for corporate taxation, despite substantial potential tax savings. A pre registered incentivized online experiment demonstrates that complexity aversion, status quo bias, and misperception about the corporate tax burden—arising from the interaction of corporate and deferred dividend taxation—help explain the preference for partnership taxation. We further find that these behavioral frictions heighten liquidity risk under the corporate system, particularly in the face of unexpected cash flow needs. Finally, a survey of German tax advisors indicates that tax advice only partially mitigates these frictions. Some advisors misperceive the benefits of corporate taxation, while others anticipate client biases and therefore refrain from recommending the corporate tax system.","lang":"eng"}],"citation":{"chicago":"Blaufus, Kay, Ralf Maiterth, Michael Milde, and Caren Sureth-Sloane. <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. TRR 266 Accounting for Transparency Working Paper Series No. 203, 2025. <a href=\"https://doi.org/10.2139/ssrn.5378466\">https://doi.org/10.2139/ssrn.5378466</a>.","short":"K. Blaufus, R. Maiterth, M. Milde, C. Sureth-Sloane, Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice , 2025.","apa":"Blaufus, K., Maiterth, R., Milde, M., &#38; Sureth-Sloane, C. (2025). <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. <a href=\"https://doi.org/10.2139/ssrn.5378466\">https://doi.org/10.2139/ssrn.5378466</a>","ieee":"K. Blaufus, R. Maiterth, M. Milde, and C. Sureth-Sloane, <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. 2025.","ama":"Blaufus K, Maiterth R, Milde M, Sureth-Sloane C. <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>.; 2025. doi:<a href=\"https://doi.org/10.2139/ssrn.5378466\">10.2139/ssrn.5378466</a>","bibtex":"@book{Blaufus_Maiterth_Milde_Sureth-Sloane_2025, series={TRR 266 Accounting for Transparency Working Paper Series No. 203}, title={Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice }, DOI={<a href=\"https://doi.org/10.2139/ssrn.5378466\">10.2139/ssrn.5378466</a>}, author={Blaufus, Kay and Maiterth, Ralf and Milde, Michael and Sureth-Sloane, Caren}, year={2025}, collection={TRR 266 Accounting for Transparency Working Paper Series No. 203} }","mla":"Blaufus, Kay, et al. <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. 2025, doi:<a href=\"https://doi.org/10.2139/ssrn.5378466\">10.2139/ssrn.5378466</a>."}},{"publication":"Hawaii International Conference on System Sciences","citation":{"ieee":"D. Leffrang, K. Bösch, and O. Müller, “Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time,” presented at the Hawaii International Conference on System Sciences, 2023.","apa":"Leffrang, D., Bösch, K., &#38; Müller, O. (2023). Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time. <i>Hawaii International Conference on System Sciences</i>. Hawaii International Conference on System Sciences.","mla":"Leffrang, Dirk, et al. “Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time.” <i>Hawaii International Conference on System Sciences</i>, 2023.","bibtex":"@inproceedings{Leffrang_Bösch_Müller_2023, title={Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time}, booktitle={Hawaii International Conference on System Sciences}, author={Leffrang, Dirk and Bösch, Kevin and Müller, Oliver}, year={2023} }","chicago":"Leffrang, Dirk, Kevin Bösch, and Oliver Müller. “Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time.” In <i>Hawaii International Conference on System Sciences</i>, 2023.","short":"D. Leffrang, K. Bösch, O. Müller, in: Hawaii International Conference on System Sciences, 2023.","ama":"Leffrang D, Bösch K, Müller O. Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time. In: <i>Hawaii International Conference on System Sciences</i>. ; 2023."},"abstract":[{"lang":"eng","text":"Optimal decision making requires appropriate evaluation of advice. Recent literature reports that algorithm aversion reduces the effectiveness of predictive algorithms. However, it remains unclear how people recover from bad advice given by an otherwise good advisor. Previous work has focused on algorithm aversion at a single time point. We extend this work by examining successive decisions in a time series forecasting task using an online between-subjects experiment (N = 87). Our empirical results do not confirm algorithm aversion immediately after bad advice. The estimated effect suggests an increasing algorithm appreciation over time. Our work extends the current knowledge on algorithm aversion with insights into how weight on advice is adjusted over consecutive tasks. Since most forecasting tasks are not one-off decisions, this also has implications for practitioners."}],"date_created":"2023-01-18T10:53:51Z","type":"conference","keyword":["Algorithm aversion","Time series","Decision making","Advice taking","Forecasting"],"department":[{"_id":"196"}],"oa":"1","status":"public","title":"Do People Recover from Algorithm Aversion? An Experimental Study of Algorithm Aversion over Time","year":"2023","author":[{"id":"51271","full_name":"Leffrang, Dirk","first_name":"Dirk","last_name":"Leffrang","orcid":"0000-0001-9004-2391"},{"last_name":"Bösch","first_name":"Kevin","full_name":"Bösch, Kevin"},{"last_name":"Müller","first_name":"Oliver","full_name":"Müller, Oliver","id":"72849"}],"conference":{"name":"Hawaii International Conference on System Sciences"},"date_updated":"2024-01-10T09:52:59Z","main_file_link":[{"url":"https://scholarspace.manoa.hawaii.edu/items/62b58ddc-895c-48c3-8194-522a1758a26f","open_access":"1"}],"_id":"37312","language":[{"iso":"eng"}],"user_id":"51271"},{"language":[{"iso":"eng"}],"_id":"50121","main_file_link":[{"url":"https://aisel.aisnet.org/icis2023/aiinbus/aiinbus/10"}],"user_id":"51271","conference":{"location":"Hyderabad, India","name":"International Conference on Information Systems (ICIS)"},"author":[{"orcid":"0000-0001-9004-2391","last_name":"Leffrang","first_name":"Dirk","full_name":"Leffrang, Dirk","id":"51271"}],"year":"2023","status":"public","title":"AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization","date_updated":"2024-01-10T09:53:41Z","date_created":"2024-01-03T09:54:00Z","department":[{"_id":"196"}],"type":"conference","keyword":["Artificial Intelligence","Algorithm Appreciation","Framing","Advice-taking","Expertise"],"citation":{"apa":"Leffrang, D. (2023). AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization. <i>International Conference on Information Systems</i>, <i>10</i>.","mla":"Leffrang, Dirk. “AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization.” <i>International Conference on Information Systems</i>, no. 10, 2023.","ieee":"D. Leffrang, “AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization,” in <i>International Conference on Information Systems</i>, Hyderabad, India, 2023, no. 10.","short":"D. Leffrang, in: International Conference on Information Systems, 2023.","ama":"Leffrang D. AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization. In: <i>International Conference on Information Systems</i>. ; 2023.","chicago":"Leffrang, Dirk. “AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization.” In <i>International Conference on Information Systems</i>, 2023.","bibtex":"@inproceedings{Leffrang_2023, title={AI Washing: The Framing Effect of Labels on Algorithmic Advice Utilization}, number={10}, booktitle={International Conference on Information Systems}, author={Leffrang, Dirk}, year={2023} }"},"publication":"International Conference on Information Systems","issue":"10","abstract":[{"lang":"eng","text":"Many researchers and practitioners see artificial intelligence as a game changer compared to classical statistical models. However, some software providers engage in “AI washing”, relabeling solutions that use simple statistical models as AI systems. By contrast, research on algorithm aversion unsystematically varied the labels for advisors and treated labels such as \"artificial intelligence\" and \"statistical model\" synonymously. This study investigates the effect of individual labels on users' actual advice utilization behavior. Through two incentivized online within-subjects experiments on regression tasks, we find that labeling human advisors with labels that suggest higher expertise leads to an increase in advice-taking, even though the content of the advice remains the same. In contrast, our results do not suggest such an expert effect for advice-taking from algorithms, despite differences in self-reported perception. These findings challenge the effectiveness of framing intelligent systems as AI-based systems and have important implications for both research and practice."}]},{"author":[{"id":"51271","full_name":"Leffrang, Dirk","orcid":"0000-0001-9004-2391","first_name":"Dirk","last_name":"Leffrang"}],"conference":{"location":"Paderborn","name":"Wirtschaftsinformatik"},"status":"public","year":"2023","title":"The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization","date_updated":"2024-01-10T09:53:24Z","_id":"50118","language":[{"iso":"eng"}],"main_file_link":[{"url":"https://aisel.aisnet.org/wi2023/19 "}],"user_id":"51271","citation":{"bibtex":"@inproceedings{Leffrang_2023, title={The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization}, number={19}, booktitle={Wirtschaftsinformatik Conference}, author={Leffrang, Dirk}, year={2023} }","ama":"Leffrang D. The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization. In: <i>Wirtschaftsinformatik Conference</i>. ; 2023.","mla":"Leffrang, Dirk. “The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization.” <i>Wirtschaftsinformatik Conference</i>, no. 19, 2023.","chicago":"Leffrang, Dirk. “The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization.” In <i>Wirtschaftsinformatik Conference</i>, 2023.","short":"D. Leffrang, in: Wirtschaftsinformatik Conference, 2023.","ieee":"D. Leffrang, “The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization,” in <i>Wirtschaftsinformatik Conference</i>, Paderborn, 2023, no. 19.","apa":"Leffrang, D. (2023). The Broken Leg of Algorithm Appreciation: An Experimental Study on the Effect of Unobserved Variables on Advice Utilization. <i>Wirtschaftsinformatik Conference</i>, <i>19</i>."},"publication":"Wirtschaftsinformatik Conference","issue":"19","abstract":[{"text":"Despite the widespread use of machine learning algorithms, their effectiveness is limited by a phenomenon known as algorithm aversion. Recent research concluded that unobserved variables can cause algorithm aversion. However, the impact of an unobserved variable on algorithm aversion remains unclear. Previous studies focused on situations where humans had more variables available than algorithms. We extend this research by conducting an online experiment with 94 participants, systematically varying the number of observable variables to the advisor and the advisor type. Surprisingly, our results did not confirm that an unobserved variable had a negative effect on advice-taking. Instead, we found a positive impact in an algorithm appreciation scenario. This study provides new insights into the paradoxical behavior in which people weigh advice more despite having fewer variables, as they correct for the advisor's errors. Practitioners should consider this behavior when designing algorithms and account for user correction behavior.","lang":"eng"}],"date_created":"2024-01-03T09:50:06Z","department":[{"_id":"196"}],"keyword":["Algorithm aversion","Data","Decision-making","Advice-taking","Human-Computer Interaction"],"type":"conference"},{"date_updated":"2022-01-06T06:52:00Z","publication_status":"published","article_type":"original","year":"2017","status":"public","title":"I’ll Have What S/he’s Having: A Case Study of a Social Trading Network","author":[{"id":"67265","full_name":"Pelster, Matthias","last_name":"Pelster","first_name":"Matthias","orcid":" https://orcid.org/0000-0001-5740-2420"}],"user_id":"67265","urn":"14524","_id":"1452","language":[{"iso":"eng"}],"abstract":[{"lang":"eng","text":"Opinion leaders of an investment network can have a significant impact on capital mar-kets because their investment decisions are adopted by their peers and trigger large trad-ing cascades, increasing herding behavior and comovement among stock returns. This paper analyzes the interaction-based relations of traders from a large social trading plat-form and identifies the driving forces and the opinion leaders within a large online trading network as the nodes with the highest centrality and the highest force of infection, respec-tively. Relying on recent insights from epidemiological research, I maintain that central-ity identifies the most central traders in the network, while the expected force quantifies the most influential traders and their spreading power. I study the behavior and charac-teristics that set central and influential traders apart from other traders. The ability to identify focal points and their trading behavior within a trading network is important for investors, investment advisers, and policy makers."}],"publication":"Proceedings of the International Conference on Information Systems","citation":{"mla":"Pelster, Matthias. “I’ll Have What S/He’s Having: A Case Study of a Social Trading Network.” <i>Proceedings of the International Conference on Information Systems</i>, 2017.","apa":"Pelster, M. (2017). I’ll Have What S/he’s Having: A Case Study of a Social Trading Network. <i>Proceedings of the International Conference on Information Systems</i>.","ieee":"M. Pelster, “I’ll Have What S/he’s Having: A Case Study of a Social Trading Network,” <i>Proceedings of the International Conference on Information Systems</i>, 2017.","short":"M. Pelster, Proceedings of the International Conference on Information Systems (2017).","ama":"Pelster M. I’ll Have What S/he’s Having: A Case Study of a Social Trading Network. <i>Proceedings of the International Conference on Information Systems</i>. 2017.","chicago":"Pelster, Matthias. “I’ll Have What S/He’s Having: A Case Study of a Social Trading Network.” <i>Proceedings of the International Conference on Information Systems</i>, 2017.","bibtex":"@article{Pelster_2017, title={I’ll Have What S/he’s Having: A Case Study of a Social Trading Network}, journal={Proceedings of the International Conference on Information Systems}, author={Pelster, Matthias}, year={2017} }"},"type":"journal_article","keyword":["Online trading","investment advice","network modeling","Expected Force","herding."],"department":[{"_id":"186"},{"_id":"578"}],"date_created":"2018-03-20T11:34:47Z"},{"volume":60,"user_id":"21810","_id":"3376","publisher":"Elsevier","page":"12-28","jel":["G21","G28","G32","J33"],"status":"public","citation":{"ieee":"A. Uhde, “Risk-taking incentives through excess variable compensation: Evidence from European banks,” <i>The Quarterly Review of Economics and Finance</i>, vol. 60, no. 5, pp. 12–28, 2016, doi: <a href=\"https://doi.org/10.1016/j.qref.2015.11.009\">https://doi.org/10.1016/j.qref.2015.11.009</a>.","apa":"Uhde, A. (2016). Risk-taking incentives through excess variable compensation: Evidence from European banks. <i>The Quarterly Review of Economics and Finance</i>, <i>60</i>(5), 12–28. <a href=\"https://doi.org/10.1016/j.qref.2015.11.009\">https://doi.org/10.1016/j.qref.2015.11.009</a>","chicago":"Uhde, André. “Risk-Taking Incentives through Excess Variable Compensation: Evidence from European Banks.” <i>The Quarterly Review of Economics and Finance</i> 60, no. 5 (2016): 12–28. <a href=\"https://doi.org/10.1016/j.qref.2015.11.009\">https://doi.org/10.1016/j.qref.2015.11.009</a>.","short":"A. Uhde, The Quarterly Review of Economics and Finance 60 (2016) 12–28.","mla":"Uhde, André. “Risk-Taking Incentives through Excess Variable Compensation: Evidence from European Banks.” <i>The Quarterly Review of Economics and Finance</i>, vol. 60, no. 5, Elsevier, 2016, pp. 12–28, doi:<a href=\"https://doi.org/10.1016/j.qref.2015.11.009\">https://doi.org/10.1016/j.qref.2015.11.009</a>.","bibtex":"@article{Uhde_2016, title={Risk-taking incentives through excess variable compensation: Evidence from European banks}, volume={60}, DOI={<a href=\"https://doi.org/10.1016/j.qref.2015.11.009\">https://doi.org/10.1016/j.qref.2015.11.009</a>}, number={5}, journal={The Quarterly Review of Economics and Finance}, publisher={Elsevier}, author={Uhde, André}, year={2016}, pages={12–28} }","ama":"Uhde A. Risk-taking incentives through excess variable compensation: Evidence from European banks. <i>The Quarterly Review of Economics and Finance</i>. 2016;60(5):12-28. doi:<a href=\"https://doi.org/10.1016/j.qref.2015.11.009\">https://doi.org/10.1016/j.qref.2015.11.009</a>"},"doi":"https://doi.org/10.1016/j.qref.2015.11.009","language":[{"iso":"eng"}],"intvolume":"        60","date_updated":"2023-01-10T09:38:37Z","publication_status":"published","author":[{"id":"36049","orcid":"https://orcid.org/0000-0002-8058-8857","first_name":"André","last_name":"Uhde","full_name":"Uhde, André"}],"title":"Risk-taking incentives through excess variable compensation: Evidence from European banks","year":"2016","department":[{"_id":"186"},{"_id":"188"}],"keyword":["Banking","Executive compensation","Risk-taking","Financial stability"],"type":"journal_article","date_created":"2018-06-27T12:16:57Z","abstract":[{"lang":"eng","text":"Employing compensation data provided by 63 banks from 16 European countries for the period from 2000 to 2010 this paper empirically investigates the impact of excess variable compensation on bank risk. As a main finding, we provide evidence for a risk-increasing impact of excess variable pay for both executive variable cash-based and variable equity-based compensation. This baseline finding holds under various robustness checks, in particular when controlling for likely reverse causality between bank risk and variable compensation by employing Granger-causality tests and instrumental variable regressions. In addition, results from a large number of sensitivity analyses including board and banking characteristics as well as the financial crisis period and the quality of a country's regulatory framework provide further important implications for banking regulators and politicians in Europe."}],"publication":"The Quarterly Review of Economics and Finance","issue":"5"},{"date_created":"2023-01-11T11:04:30Z","keyword":["risk-taking channel","competition","concentration","bank soundness","European banking"],"type":"working_paper","department":[{"_id":"186"},{"_id":"188"}],"citation":{"ieee":"T. C. Michalak and A. Uhde, <i>The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking</i>. Paderborn University, 2011.","apa":"Michalak, T. C., &#38; Uhde, A. (2011). <i>The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking</i>. Paderborn University.","short":"T.C. Michalak, A. Uhde, The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking, Paderborn University, 2011.","chicago":"Michalak, Tobias C., and André Uhde. <i>The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking</i>. Paderborn University, 2011.","mla":"Michalak, Tobias C., and André Uhde. <i>The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking</i>. Paderborn University, 2011.","bibtex":"@book{Michalak_Uhde_2011, title={The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking}, publisher={Paderborn University}, author={Michalak, Tobias C. and Uhde, André}, year={2011} }","ama":"Michalak TC, Uhde A. <i>The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking</i>. Paderborn University; 2011."},"abstract":[{"lang":"eng","text":"Using a sample of stock-listed bank holding companies located in Western Europe over the period from 1997 to 2008 this paper provides empirical evidence that an increase in short-term interest rates as well as an extended period of expansionary monetary policy has a negative impact on European stock-listed banks’ soundness as measured by the Expected Default Frequency. Against this background and in order to evaluate interactions between the risk-taking channel of monetary policy and the competitiveness of a country’s banking market we find a negative impact of an increase in competition in the loan market – proxied by the Boone-indicator – on financial soundness. Referring to the structural-conduct performance (SCP) paradigm, this paper provides further evidence that an increase in concentration in the banking market spurs financial soundness. "}],"publisher":"Paderborn University","_id":"36021","language":[{"iso":"eng"}],"user_id":"21810","title":"The Nexus between Monetary Policy, Banking Market Structure and Bank Risk Taking","status":"public","year":"2011","jel":["E43","E44","E52","G01","G28"],"author":[{"full_name":"Michalak, Tobias C.","last_name":"Michalak","first_name":"Tobias C."},{"full_name":"Uhde, André","last_name":"Uhde","first_name":"André","id":"36049"}],"publication_status":"published","date_updated":"2024-04-17T13:35:15Z"}]