In his ‘Simple model of herd behaviour’, Banerjee (1992) shows that – in a sequential game – if the first two players have chosen the same action, all subsequent players will ignore their own information and start a herd, an irreversible one. The points of strength of Banerjee’s model...

The aim of this paper is to analyze bidder's behavior, comparing individuals and groups' decisions within the dollar auction framework. This game induces subjects to fall prey into the paradigm of escalation, which is driven by agents' commitment to higher and higher bids. Whenever each...

Environmental psychologists suggest that people feelings and emotions determine what they do and how they do it. According to the stimulus organism respons model (SOR), the environment creates a behavioral/emotional response in individuals that, in turn, induces approach or avoidance behaviors....

In the context of eliciting preferences for decision making under risk, we ask the question: which might be the 'best' method for eliciting such preferences?ʺ. It is well known that different methods differ in terms of the bias in the elicitation; it is rather less well-known that different...

Previous research indicates that risky and uncertain marginal returns from the public good significantly lower contributions. This paper presents experimental results illustrating that the effects of risk and uncertainty depend on the employed parameterization. Specifically, if the value of the...

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the empirical performance of expected utility and the alternative nonexpected utility theories. The present paper performs a similar analysis which relies on pricing data instead of...