This paper reports on an experimental study of the influence of asymmetric information and information spillovers on bargaining outcomes. It develops and tests Kuhn and Gu (1999) s model of learning in sequential wage negotiations, by means of two Ultimatum Bargaining Games with uncertainty on...

We study the interactions between the capital structure and the technological flexibility choices of firms in a duopoly. When there are bankruptcy costs, a leveraged firm may modify its strategic choices in order to decrease its probability of bankruptcy. We show that, when the capacity level of...

A model of location choice by Cournot oligopolists is presented, under the assumption that R&D spillovers depend on the distance between firms. We show that a variety of patterns emerge. Agglomeration is optimal under certain assumptions. Geographical dispersion in a two-dimensional plane is...

Subjects submitted strategies for playing a public good game. The strategies interacted with each other in a computer simulation. They could be revised and resubmitted for a second and a third simulation round. The strategies' average contribution to the public good increased from one simulation...

In this experimental study we examine behavior relating to voluntary contributions to reduce expected losses associated, for example, with the occurrence of natural disasters or major industrial accidents. We ask subjects to allocate tokens between a private investment and a public investment....

The paper extends the standard tax evasion model by allowing for social interactions. In Manski's (1993) nomenclature, our model takes into account social conformity effects (i.e., endogenous interactions), fairness effects (i.e., exogenous interactions) and sorting effects (i.e., correlated...

The economic models of tax compliance predict that individuals should evade taxes when the expected benefit of cheating is greater than its expected cost. When this condition is fulfilled, the high compliance however observed remains a puzzle. In this paper, we investigate the role of emotions...