This paper extends the standard work effort model by allowing workers to interact through networks. We investigate experimentally whether peer performances and peer contextual effects influence individual performances. Two types of network are considered. Participants in Recursive networks are...

The objective of this paper is to look into the probability that, given the choice, corporate groups would opt for taxation on a consolidated basis. Consolidation would allow them to offset losses crossborder but remove the opportunity to exploit international tax-rate differentials between...

We study the relationship between inequality and inter-groups conflicts (riots), focussing on social inequality. Disadvantaged societal groups experience discrimination and thus have limited access to some social and labour resources like education or employment. First, we experimentally...

In this paper, we investigate individuals' investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their relative position in...

The World Trade Center attack has shed light on the urgent need to implement preventing measures against terrorism and to enhance cooperation in the global security system for all countries. However, international coordination cannot be taken for granted. It is often ineffective and likely to...

We provide an experimental analysis of competitive insurance markets with adverse selection. Our parameterized version of the lemons' model (Akerlof 1970) in the insurance context predicts total crowding out of low-risks when insurers offer a single full insurance contract. The therapy proposed...

We evaluate the impact of three auction mechanisms the BeckerDeGrootMarschak (BDM) mechanism, the second-price auction, and the random nth-price auction in the measurement of private willingness-to-pay and willingness-to-accept for a pure public good. Our results show that the endowment effect...

The objective is to study from an experimental point of view investors' reactions to the announcement of annual earnings in terms of trading volume. Annual net income is seen by shareholders as the most important figure, since it is, for individual accounts, the basis for determining profit by...

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 elicit subjects' willingness to pay to reduce future risk. In our experiments, subjects are given a cash endowment and a risky lottery. They report their willingness to pay to exchange the risky lottery for a safe one. Subjects play the lottery either immediately, eight weeks later, or...