In this paper the behavior of a tax-collecting government (a tax office) when imposing a quantity-tax to firms is analyzed along a two-period signaling model. Each taxpayer privately knows its technological attributes, while third parties—the tax office among them—have only a prior belief...

A patent holder owning a two-period lasting innovation is unable to push it into the market, so it is licensed to a downstream user with production capabilities to market it. The production cost of this firm can be low or high, but the patent holder has only a prior on this fact

This paper investigates the effect of poverty and good intentions on dictator game giving. Previous experimental studies in which information was supplied to dictators about recipients have shown that dictator giving increases overall in this context. We develop a new design of standard informed...

In this paper we obtain empirical evidence of the relationship between individuals' risk attitudes and individuals' beliefs on their rival's choices in the Prisoners' Dilemma game. We find that (i) Risk-averse subjects seem to think that their opponent will defect, (ii) Risk-loving individuals...

BCG are widely considered to be an ideal tool for analyzing individual depth of reasoning. Accordingly, experimental results are interpreted as arising from different levels of reasoning. In this paper we turn attention to heterogeneity in computational skills. We show that the presence of...

We report on an experimental study with real-world politicians. These political experts face political choice problems under risk and probability. Thus, we test the frequently observed violations of rational choice theory -the reference point effect, loss aversion, framing effects, and the...

In a symmetric differentiated experimental duopoly we test the ability of Price Matching Guarantees (PMG) to rise prices above the competitive levels. PMG is introduced both as a market institution (the effective selling price is always the lowest posted price) and as a strategic choice so...