in an experiment where actions are strategic substitutes. The game theoretic basis for our experiment is the model of …

direction, we have conducted a laboratory experiment with 490 participants. We consider "cooperative" investments that directly … benefit the non-investing party. While according to standard theory, contracting would be useless if renegotiation cannot be …

cornerstone of contract theory. We have conducted an experiment with 720 participants to explore whether the theoretical insights … are reflected by the behavior of subjects in the laboratory and to what extent deviations from standard theory can be … agency theory is indeed useful to qualitatively predict how variations in the degree of uncertainty affect subjects' behavior …

A central insight of agency theory is that when a principal offers a contract to a privately informed agent, the … report about an experiment with 508 participants designed to test whether this fundamental trade-off is actually relevant. In … particular, we investigate settings with both exogenous and endogenous information structures. We find that theory is indeed a …

candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

controlled experiment in which subjects were given an opportunity to choose a risky outcome - a real-stakes gamble with a higher …

We conduct a controlled laboratory experiment where subjects dynamically choose their portfolio allocation between a …