This paper studies the effect of sunk entry-costs on potential competition in a multi-market framework, where potential entrants have different home market profits. Although sunk-entry-costs are supposed to increase entry barriers, the experimental results suggest that firms view entry costs...

Can any prominent theory of decision under risk rationalize both small-stakes risk aversion and large-stakes risk aversion? Do some prominent theories fail to rationalize patterns of same-stakes risk aversion? How do reference payoffs enter in the answer to these questions? What would be the...

This paper examines the effectiveness of using asymmetric liability to combat harassment bribes. Asymmetric liability is a mechanism where bribe-takers are culpable but bribe-givers have legal immunity. Results from our experiment indicate that while this policy has the potential to...

We introduce a novel allocation game to investigate the role of entitlements in household decision-making. Subjects can allocate their earnings on joint consumption good, or on gender-specific private consumption good. Subjects’ consumption choices are observed under two treatments: earning...