This paper analyses collusion-proof multilateral insurance contracts between a risk neutral insurer and multiple risk averse agents in an environment of asymmetric costly state verification.  Optimal contracts involve the group of agents pooling uncertainty and the insurer acting as reinsurer...

Three experiments on utility interdependence are discussed. Subjects receive money by betting and possibly by arbitrary assignments. They can then pay to reduce and, possibly, redistribute the steal money; in one case, only the decisions of a randomly determined dictator are implemented. The...

Game harmony is a generic game property describing how conflictual or non-conflictual the interests of players are. Simple and general game harmony measures can predict mean cooperation in 2 x 2 games such as the Prisoner`s Dilemma, the Chicken and trust games. Two measures can be simply...

Sharing a common fate with some people but not others may affect how economic agents behave within firms and organizations. Recognizing that many bilateral transactions occur both within and between groups sharing some degree of common fate, we present an experimental test of the effect of...

Three experiments on utility interdependence are discussed. Subjects receive money by betting and possibly by arbitrary assignments. They can then pay to reduce and, possibly, redistribute the steal money; in one case, only the decisions of a randomly determined dictator are implemented. The...

Although it is well known that trust is an important component of the fulfilment of incomplete contracts, less is known regarding how robust it is to past experiences.