This paper studies the response times of experimental subjects playingthe Ultimatum game in a laboratory setting using monetary incentives.We find that proposals are not significantly correlated with responsetime, whereas responders’ behavior is positively and significantlycorrelated. Hence,...

Does geographic distance or the perceived social distance between subjects significantlyaffect proposer and responder behavior in ultimatum bargaining? To answer this question,subjects play a one-shot ultimatum game with three players (proposer, responder, and apassive dummy player) and...

The common prior assumption justifies private beliefs as posterior probabilities when updatinga common prior based on individual information. Common priors are pervasive in most economicmodels of incomplete information and oligopoly models with asymmetrically informed firms. Wedispose of the...

Theory absorption, a notion introduced by Morgenstern and Schwödiauer (1972)and further elaborated by Güth and Kliemt (2004), discusses the problem whether atheory can survive its own acceptance. Whereas this holds for strategic equilibria accordingto the assumptions on which they are based,...

There is robust field data showing that a frequent and successful way of looking fora job is via the intermediation of friends and relatives. Here we want to explore thisexperimentally. Participants first play a simple public good game with two interactionpartners ("friends"), and share whatever...

Social institutions regulating group conduct have been regarded as necessaryfor human cooperation to transcend family bonds. However, manystudies in economics and biology indicate that reciprocity based on repeatedinteraction suffices to establish cooperation with non-kin. We shedlight on the...

This paper revisits and extends the experiment on the solidarity gameby Selten and Ockenfels (1998). We replicate the basic design of the solidaritygame and extend it in order to test the robustness of the fixed totalsacrifice' effect and the applied strategy method. Our results only...

This paper brings together views on choice making as have been developed in philosophy, psychology, and economics. Starting from specific examples the relative merits of different approaches are discussed. The conclusion that models of boundedly rational behavior are the future of social science...

Consistency and optimality together with converse consistency provide an illuminating and novel characterization of the equilibrium concept (Peleg and Tijs, 1996). But (together with non-emptiness) they preclude refinements of the equilibrium notion and selection of a unique equlibrium (norde et...

Spieltheoretische Überlegungen zeigen, dass Reputationsmechanismen, wie sie auf Internet-Marktplattformen zur Anwendung kommen, prinzipiell geignet sind, Handel in großen anonymen Märkten zu erleichtern. Dies geil selbst dann, wenn die Marktteilnehmer ihre Identität jederzeit und kostenlos...