We analyze a two-stage game between two heterogeneous players. At stage one, common risk is chosen by one of the players. At stage two, both players observe the given level of risk and simultaneously invest in a winner-take-all competition The game is solved theoretically and then tested by...

Many experiments indicate that most individuals are not purely motivated by material self interest, but also care about the well being of others. In this paper we examine tournaments among inequity averse agents, who dislike disadvantageous inequity (envy) and advantageous inequity (compassion)....

In the recent experimental literature several social preference models have been suggested that address observed behavior not reducible to the pursuit of self-interest. Inequality aversion is one such model where preferences are distributional. Frequently, envy is suggested as the underlying...

We introduce the moonlighting game. Player A can take money from or pass money to player B, who can either return money or punish player A. One-shot experiments were performed on this game. Treatments were conducted with and without making non-binding agreements beforehand. The results refute...

This paper reports the first experimental study of the serial and the average cost pricing mechanism under three different treatments: a complete information treatment and two treatments designed to simulate distributed systems like the Internet with extremely limited information, synchronous...