An anticipated benefit of the prospective European Banking Union is stronger supervision of European banks. Another benefit would be enhanced resolution of banks in distress. While national governments confine themselves to the domestic effects of a banking failure, a European Resolution...

Cross‐border banking needs cross‐border recapitalisation mechanisms. Each mechanism, however, suffers from the financial trilemma, which is that cross‐border banking, national financial autonomy and financial stability are incompatible. In this paper, we study the efficiency of different...

The financial trilemma states that financial stability, financial integration and national financial policies are incompatible. Any two of the three objectives can be combined but not all three; one has to give. This paper develops a model to underpin the financial trilemma. Our findings for...

This paper experimentally explores how the enforcement of cooperative behavior in a social dilemma is facilitated through institutional as well as emotional mechanisms. Recent studies emphasize the importance of negatively valued emotions, such as anger, which motivate individuals to punish free...

This discussion paper resulted in a publication in the <I>Journal of Economic Behavior & Organization</I> (2008), volume 66, pages 243-250.<P> We study fairness and reciprocity in a Hawk-Dove game. This alllows us to testvarious models in one framework. We observe a large extent of selfish and...</p></i>

This discussion paper led to a publication in <A href="http://onlinelibrary.wiley.com/doi/10.1111/1467-9442.00182/abstract">'Journal of Economics'</A> 102(1) 23-39.<P>We compare a partners condition where the same small group of subjects plays arepeated public good game to astrangers condition where subjects play this game in changing group formations.Subjects in the partners...</p></a>

In many business transactions, in labor-management relations, in internationalconflicts, and welfare state reforms bargainers hold strong entitlements that are oftengenerated by claims that are not feasible any more. These entitlements seem to considerablyshape negotiation behavior. By using the...