The "grammar of trust" is one the most explored loci in game theory and behavioural economics. However, still much needs to be understood about the nature of trust in non-enforceable, personalised interactions, in markets and within organizations. This experimental study aims at contributing to...

The 'grammar of trust' is one of the most explored loci in behavioural and experimental economics. This experimental study aims at contributing to the understanding of new dimensions of trust by exploring how risky trust may foster a trustee's behavioural change. It investigates trustee's...

Theoretical models have had difficulties to account, at the same time, for the most important stylized facts observed in experiments of the Voluntary Contribution Mechanism. A recent approach tackling that gap is Arifovic and Ledyard (2012), which implements social preferences in tandem with an...

The common prior assumption is pervasive in game-theoretic models with incomplete information. This paper investigates experimentally the importance of inducing a common prior in a two-person signaling game. For a specific probability distribution of the sender's type, the long-run behavior...

This paper reports a new and significant experimental demonstration that market participants adjust their bids towards the price observed in previous market periods when - by design - individuals' values should not be affiliated with the market price. This demonstration implies that market...

In this paper, we report an experimental investigation of the effect of framing on social preferences, as revealed in a one-shot linear public goods game. We use two indicators to measure social preferences: self-reported emotional responses; and, as a behavioural indicator of disapproval,...

In this paper we study the relationship between inequality and social instability. While the argument that inequality can be damaging for the cohesion of a society is old, the empirical evidence is mixed. We use a novel approach to isolate the causal relationship running from inequality to...

We study the relationship between inequality and social instability. While the argument that inequality can be damaging for the cohesion of a society is well established, the empirical evidence is mixed. We use a novel approach to isolate the causal relationship running from inequality to social...

In experimental games, a substantial minority of players often fail to best respond. Using two-person 3x3 one-shot games, we investigated whether 'structuring' the pre-decision deliberation process produces greater consistency between individuals' stated values and beliefs on the one hand and...

It is commonly assumed that friendship should decrease strategic uncertainty in games involving tacit coordination. However, this has never been tested on two "opposite poles" of coordination, namely, games of strategic complements and substitutes. We present an experimental study having...