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Driving Forces of Informal Sanctions
Falk, Armin; Fehr, Ernst; Fischbacher, Urs - Institut für Volkswirtschaftslehre, …
of fairness principles is the most important driving force of sanctions but, in addition, a non-negligible part of the … to play a negligible role. Within the class of fairness-driven sanctions the motive to harm those who committed unfair …
Persistent link: https://www.econbiz.de/10005627991
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Two Concerns about Rational Choice: Indoctrination and Imperialism
Frey, Bruno S.; Meier, Stephan - Institut für Volkswirtschaftslehre, …
Rational Choice Theory is often criticized to indoctrinate students in a negative, which is supported by some laboratory experiments. But do students of Rational Choice Theory really behave more selfishly? This paper presents evidence from a natural decision on voluntary donation at the...
Persistent link: https://www.econbiz.de/10005760927
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Use and abuse of authority: A behavioral foundation of the employment relation
Fehr, Ernst; Schmidt, Klaus M.; Bartling, Björn - Institut für Volkswirtschaftslehre, … - 2012
, inducing them to resist entering into employment contracts. This resistance to employment contracts vanishes if fairness …
Persistent link: https://www.econbiz.de/10010817249
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Does willful ignorance deflect punishment? – An experimental study
Weber, Roberto A.; Bartling, Björn; Engl, Florian - Institut für Volkswirtschaftslehre, … - 2013
This paper studies whether people can avoid punishment by remaining willfully ignorant about possible negative consequences of their actions for others. We employ a laboratory experiment, using modified dictator games in which a dictator can remain willfully ignorant about the payoff...
Persistent link: https://www.econbiz.de/10010817256
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Let the market decide: an experimental study of competition and fairness
Bartling, Björn; Zehnder, Christian; Manuel, Grieder - Institut für Volkswirtschaftslehre, … - 2014
inform the debate on the fairness of market outcomes by showing that the use of a competitive procedure can, by itself …
Persistent link: https://www.econbiz.de/10010817309
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It's all about Connections: Evidence on Network Formation
Falk, Armin; Kosfeld, Michael - Institut für Volkswirtschaftslehre, …
We present an economic experiment on network formation, in which subjects can decide to form links to one another. Direct links are costly but being connected is valuable. The game-theoretic basis for our experiment is the model of Bala and Goyal (2000). They distinguish between two scenarios...
Persistent link: https://www.econbiz.de/10005760915
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Appropriating the Commons - A Theoretical Explanation
Falk, Armin; Fehr, Ernst; Fischbacher, Urs - Institut für Volkswirtschaftslehre, …
In this paper we show that a simple model of reciprocal preferences explains major experimental regularities of common pool resource (CPR) experiments. The evidence indicates that in standard CPR games without communication and without sanctioning possibilities inefficient excess appropriation...
Persistent link: https://www.econbiz.de/10005585660
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The Behavioral Effects of Minimum Wages
Falk, Armin; Fehr, Ernst; Zehnder, Christian - Institut für Volkswirtschaftslehre, …
The prevailing labor market models assume that minimum wages do not affect the labor supply schedule. We challenge this view in this paper by showing experimentally that minimum wages have significant and lasting effects on subjects’ reservation wages. The temporary introduction of a minimum...
Persistent link: https://www.econbiz.de/10005627801
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Testing Theories of Fairness - Intentions Matter
Falk, Armin; Fehr, Ernst; Fischbacher, Urs - Institut für Volkswirtschaftslehre, …
Recently developed models of fairness can explain a wide variety of seemingly contradictory facts. The most … controversial and yet unresolved issue in the modeling of fairness preferences concerns the behavioral relevance of fairness … intentions. Intuitively, fairness intentions seem to play an important role in economic relations, political struggles and legal …
Persistent link: https://www.econbiz.de/10005627833
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The Envious Punisher: Understanding Third and Second Party Punishment with Simple Games
Leibbrandt, Andreas; López-Pérez, Raúl - Institut für Volkswirtschaftslehre, … - 2008
We provide a systematic comparison of punishment from unaffected third parties and affected second parties using a within-subject design in ten simple games. We apply the classification analysis by El-Gamal and Grether (1995) and find that a parsimonious model assuming subjects are either...
Persistent link: https://www.econbiz.de/10005627932