Contract audits aimed at reducing information asymmetry and transaction costs are frequently used in imperfect markets such as defense procurement. This contradicts predictions from standard economic theory. We conduct a laboratory experiment to investigate this paradox. Our laboratory setup...

This paper presents the results of a political stock market in the Netherlands: PAM94. The exchange covered three consecutive elections, allowing trade on five different markets. The predictions at PAM94 appear to be less accurate than those of previous markets of comparable size. Of the...

We use a laboratory experiment to compare the way groups and individuals behave in aninter-temporal common pool dilemma. The experimental design distinguishes between anon-strategic problem where players (individuals or groups of three) make decisions withoutinteraction and a strategic part...

An individual choosing a health insurance policy faces a complex decision environment where a large set of alternatives differ on a variety of dimensions. There is uncertainty and the choice is repeated at least once a year. We study decisions and decision strategies in a laboratory experiment...

This paper considers three alternative ways to sell heterogeneous licenses via a first-price format when there is single unit demand. It has been suggested that incorporating a first-price element may bolster competition in this case [Klemperer, Paul D., 2002. What really matters in auction...