In this paper we analyze sequencing situations under incomplete information where agents have interdependent costs. We first argue why Vickrey-Clarke-Groves (or VCG) mechanism fails to implement a simple sequencing problem in dominant strategies. Given this impossibility, we try to implement...

Adaptive learning and punishment are highly prominent competing explanations for ultimatum game behavior. We report on an experiment that considers each theory in stand-alone form, so that one does not rely on the other in any substantial way. Our data exhibits patterns for which punishment can...

Two players bargain over the allocation of a sum of money. They are only incompletely informed about the opponent's alternative in case of conflict. The paper investigates two different experimental approaches: the spontaneous behavior of subjects in a game playing experiment and the strategies...

Video taped group decision experiments on a two-person investment game were used to elicit the motivational structure of subjects' behavior. A majority of investors trusted (invested) and a majority of receivers reciprocated (returned). Cognition and decision were focused on extremes: total or...

We report an experiment that uses the strategy method (Selten 1967) to elicit subjects' general strategy for playing any 2-person 3x3-game with integer payoffs between 0 and 99. Each two subjects' strategies play 500000 games in each of the 5 tournaments. For games with pure strategy equilibria...

Zwei Experimente mit Entscheidungstrdgern aus der Praxis des Finanzmarkts sind durchgefuehrt worden, um die Frage zu klaeren, ob es Umstände gibt, unter denen der Fluch des Gewinners auch Kapitalmarktprofis gefdhrdet. Die Antwort ist ein klares "Ja". Der Fluch des Gewinners schlug nicht nur im...

We formulate a dynamic learning-and-adjustment model of a market in which sellers choose signals that potentially reveal their types. If the dynamic process selects a unique limiting outcome, then that outcome must be an undefeated equilibrium; though to be undefeated does not suffice to be the...