Microfinance programmes provide poor people with small loans given to jointly liable self-selected groups. Follow-up loans provide incentives to repay. In an experiment we investigate the influence of those features on strategic default. Each group member invests in an individual risky project,...

Unexpected variation in emissions can have an enormous impact on the prices of emission permits and the efficiency achieved in tradable permit markets. Shocks to emission levels can be correlated across firms; for example, most firms require more emission permits than planned for following a...

It is a well-established fact that corruption is a widespread phenomenon. An important aspect of corruption is that two parties act jointly in order to further their own interests at the expense of a third party. The response of the third party has a significant impact on the persistence of...