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Fairness, Errors and the Power of Competition
Fischbacher, Urs; Fong, Christina M.; Fehr, Ernst - Institut für Volkswirtschaftslehre, …
One of the most basic questions in economics concerns the effects of competition on market prices. We show that the neglect of both fairness concerns and decision errors prevents a satisfactory understanding of how competition affects prices. We conducted experiments which demonstrate that the...
Persistent link: https://www.econbiz.de/10005463516
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Heterogeneous social preferences and the dynamics of free riding in public goods
Fischbacher, Urs; Gächter, Simon - Institut für Volkswirtschaftslehre, … - 2005
We provide a direct test of the role of social preferences in voluntary cooperation. We elicit individuals’ cooperation … novel test as to whether there are "types" of players who behave consistently with their elicited preferences. We find clear …
Persistent link: https://www.econbiz.de/10005585644
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Measuring Social Norms and Preferences using Experimental Games: A Guide for Social Scientists
Camerer, Colin F.; Fehr, Ernst - Institut für Volkswirtschaftslehre, …
Experimental games turned out to be remarkably productive tools for examining the nature of social preferences and social norms. This paper describes the methods and tools of experimental game theory and provides a selection of games that have been useful. We also discuss the role of...
Persistent link: https://www.econbiz.de/10005585655
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Coordination in a Repeated Stochastic Game with Imperfect Monitoring
Gerber, Anke; Hens, Thorsten; Vogt, Bodo - Institut für Volkswirtschaftslehre, …
We consider a repeated stochastic coordination game with imperfect public monitoring. In the game any pattern of coordinated play is a perfect Bayesian Nash equilibrium. Moreover, standard equilibrium selection arguments either have no bite or they select an equilibrium that is not observed in...
Persistent link: https://www.econbiz.de/10005627914
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The Effect of Sunk Costs on the Outcome of Alternating-Offers Bargaining between Inequity-Averse Agents
Ewerhart, Christian - Institut für Volkswirtschaftslehre, …
The paper analyzes the infinite-horizon alternating-offers bargaining game between agents with inequity … affect the ex-post bargaining outcome, giving an advantage to the party that contributed more. Under suitable circumstances …
Persistent link: https://www.econbiz.de/10005627959
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A Theory of Reciprocity
Falk, Armin; Fischbacher, Urs - Institut für Volkswirtschaftslehre, …
This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...
Persistent link: https://www.econbiz.de/10005627997
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Market experience is a reference point in judgments of fairness
Herz, Holger; Taubinsky, Dmitry - Institut für Volkswirtschaftslehre, … - 2013
-applicable model of path-dependent fairness preferences, in which past experiences shape preferences, and we experimentally test the …
Persistent link: https://www.econbiz.de/10010817279
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Reference points in renegotiations: The role of contracts and competition
Schmidt, Klaus M.; Bartling, Björn - Institut für Volkswirtschaftslehre, … - 2012
Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this … effect of contracts on bargaining threatpoints. We compare situations in which an initial contract is renegotiated to … strategically equivalent bargaining situations in which no ex ante contract was written. The ex ante contract causes sellers to ask …
Persistent link: https://www.econbiz.de/10010604136
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Evidence for countercyclical risk aversion: an experiment with financial professionals
Cohn, Alain; Engelmann, Jan; Fehr, Ernst; Maréchal, … - Institut für Volkswirtschaftslehre, … - 2013
A key ingredient of many popular asset pricing models is that investors exhibit countercyclical risk aversion, which helps explain major economic puzzles such as the strong and systematic variation in risk premiums over time and the high volatility of asset prices. There is, however,...
Persistent link: https://www.econbiz.de/10011240398
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Generosity across contexts
Weber, Roberto A.; Davis, Alexander L.; Jehli, Nadja R.; … - Institut für Volkswirtschaftslehre, … - 2011
Extensive research in economics explores generosity in monetary allocations. However, generosity often involves the allocation of non-monetary goods or experiences. Existing evidence suggests that generosity may be higher in such contexts, though no direct comparison exists. Here, we compare...
Persistent link: https://www.econbiz.de/10011203012