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We introduce a simple, easy to implement instrument for jointly eliciting risk and ambiguity attitudes. Using this instrument, we structurally estimate a two-parameter model of preferences. Our findings indicate that ambiguity aversion is significantly overstated when risk neutrality is assumed....
Persistent link: https://www.econbiz.de/10011189100
leaders and when they take place anonymously in a competitive market. The theory has strong predictions. In both cases …
Persistent link: https://www.econbiz.de/10009493272
(coalitions) of players. International agreements serve as one example. This paper experimentally tests theory on the formation of … coalitions in different institutions and compares those to a voluntary contribution mechanism. The experiment confirms the rather … pessimistic conclusions from the theory: only few players form a coalition when the institution prescribes the full …
Persistent link: https://www.econbiz.de/10008634661
We develop a competitive equilibrium theory of a market for votes. Before voting on a binary issue, individuals may buy …
Persistent link: https://www.econbiz.de/10008533385
The minimax argument represents game theory in its most elegant form: simple but with stark predictions. Although some … that pit professionals against preprogrammed computers, and (2) post-experiment questionnaires. The most likely explanation …
Persistent link: https://www.econbiz.de/10008614935
We present and experimentally test a mechanism that provides a simple, natural, low cost, and realistic solution to the problem of compliance with socially determined efficient actions, such as contributing to a public good. We note that small self-governing organizations often place enforcement...
Persistent link: https://www.econbiz.de/10009019669
This paper compares two methods to encourage socially optimal provision of a public good. We compare the efficacy of vigilante justice, as represented by peer-to-peer punishment, to delegated policing, as represented by the "hired gun" mechanism, to deter free riding and improve group welfare....
Persistent link: https://www.econbiz.de/10009019694
We investigate the determinants of giving in a lab-in-the-field experiment with large stakes. Study participants in … post-experiment responses suggest that this effect is driven by a desire to control how recipients use gifted resources …
Persistent link: https://www.econbiz.de/10010951192
experiment and altruism largely explains why people give. …
Persistent link: https://www.econbiz.de/10010951254
field experiments can yield important insights into economic theory and provide useful guidance to policymakers. I also draw …
Persistent link: https://www.econbiz.de/10005084551