We present an experiment to compare the two fairness theories by Bolton and Ockenfels [ERC] and by Fehr and Schmidt [F&S]. If one wants to compare their predictive power, most of the experiments that are interpreted retrospectively are not helpful, since both theories make equal or very similar...

This article studies the design of optimal mechanisms to regulate entry in natural oligopoly markets, assuming the regulator is unable to control the behavior of firms once they are in the market. We adapt the Clarke--Groves mechanism, characterize the optimal mechanism that maximizes the...