Many decisions in economics and finance have to be made under severe time pressure. Furthermore, payoffs frequently depend on the speed of decision-making, like, for instance, when buying and selling stocks. In this paper, we examine the influence of time pressure and time-dependent incentive...

One-shot interaction and repeated interaction often co-exist in the real world. We study possible behavioral effects of this co-existence in a principal-agent setting, in which a principal simultaneously employs a permanent and a temporary agent. Our experimental results indicate that there is...

We report three repetitions of Falk and Kosfeld's (2006) low and medium control treatmentswith 364 subjects. Each repetition employs a sample drawn from a standard subject pool ofstudents and demographics vary across samples. Our results largely conict with those of theoriginal study. We mainly...

A unique indivisible commodity with an unknown common value is owned bygroup of individuals and should be allocated to one of them while compensating theothers monetarily. We study the so-called fair division game (Güth, Ivanova-Stenzel,Königstein, and Strobel (2002, 2005)) theoretically and...

Norms play an important role in establishing social order. Thecurrent literature focuses on the emergence, maintenance and impactof norms with regard to coordination and cooperation. However, theissue of norm-related conict deserves more attention. We develop ageneral theory of \normative...

We study ultimatum and dictator experiments where the first moverchooses the amount of money to be distributed between the playerswithin a given interval, knowing that her own share is fixed. Thus, thefirst mover is faced with scarcity, but not with the typical trade-off betweenher own and the...

This article examines the nature of human behavior in a nested socialdilemma referred to as the Spillover Game. Players are divided into twogroups with positive production interdependencies. Based on theoreticallyderived opportunistic, local, and global optima, our experimental...

Sanctions are widely used to promote compliance in principal-agent-relationships.While there is ample evidence confirming the predicted positive incentive effect of sanctions,it has also been shown that imposing sanctions may in fact reduce complianceby crowding-out intrinsic motivation. We add...

Preference for control affects investment behavior. Participants of laboratory experiments invest different amount of money in a risky asset when face with two different methods of control which have identical payoff structure and probability distribution, but provide different sense of control....

We experimentally test whether intentional and observable discriminatorypay of symmetric agents in the Winter (2004) game causes lowpaid agents to reduce effort. We control for intentionality of wages byeither allowing a principal to determine wages or by implementing arandom process. Our main...