We analyze the provision of a step-level public good in an experiment. Specifically, we investigate how the order of moves and the introduction of a second step-level affects public-good provision. We find that the sequential-move game improves public-good provision and payoffs. An additional...

This paper studies the effect of trade facilitation on vertical firm structure using plant-level data from Switzerland. Based on the Business Census and the Input-Output table, we first calculate a binary measure of vertical integration for all plants registered in Switzerland. We then estimate...

Ever since Sjaastad (1962), researchers have struggled to quantify the psychic cost of migration. We monetize psychic cost as the wage premium for moving to a culturally different location. We combine administrative social security panel data with a proxy for cultural difference based on unique...

We show theoretical and experimental results that demonstrate the potential of transparency to influence committee decision making and deliberation. We present a model in which committee members have career concerns and unanimity is needed to change the status quo. We study three scenarios -...

Transparency and accountability are often regarded as crucial for good governance and the efficient organization of public affairs. To systematically explore the impact of transparency and accountability on cooperation, we conduct a series of laboratory experiments on a variation of the public...

We conducted an experiment on the nature of income sharing within 95 established couples in Germany. In a first step, the partners revealed their individual preferences by making consumption choices independently. In a second step, decisions were taken jointly over five different rounds with...

Many decisions in politics and business are made by teams rather than by single individuals. In contrast, economic models typically assume an individual rational decision maker. A rapidly growing body of (experimental) literature investigates team decisions in different settings. We study team...

In this experiment, we endogenize the choice of which contribution scheme is implemented in a public good game. We investigate three rule-based contribution schemes and a voluntary contribution mechanism (VCM). The game is implemented either as a Single- or a Multi-Phase Game. In the...

We investigate the formation of market prices in a new experimental setting involving multi-period asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and (2) the provision of...

A constant price level facilitates cooperation among firms whereas steady inflation and deflation rates lower firms' ability to cooperate. In an experimental market with price competition we show that both inflation and deflation signi cantly reduce cooperation compared to treatments with a...