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Kirchkamp, Oliver; Mill, Wladislaw - 2019

In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and spite can be used to rationalize deviations from risk...

Persistent link: https://www.econbiz.de/10012018322

Conditional Cooperation and the Effect of Punishment

Kirchkamp, Oliver; Mill, Wladislaw - 2018

We study how punishment influences conditional cooperation. We ask two questions: 1) how does conditional cooperation change if a subject can be punished and 2) how does conditional cooperation change if a subject has the power to punish others. In particular, we disentangle the decision to be a...

Persistent link: https://www.econbiz.de/10011887375

Diagnostic Uncertainty and Insurance Coverage in Credence Goods Markets

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020

Credence goods markets – like for health care or repair services – with their informational asymmetries between sellers and customers are prone to fraudulent behavior of sellers and resulting market inefficiencies. We present the first model that considers both diagnostic uncertainty of...

Persistent link: https://www.econbiz.de/10012425587

The hidden costs of tax evasion : collaborative tax evasion in markets for expert services

Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - 2015

We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. Our results suggest that tax evasion attempts - independently of whether...

Persistent link: https://www.econbiz.de/10010529409

Diagnostic uncertainty and insurance coverage in credence goods markets

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020

Credence goods markets - like for health care or repair services - with their informational asymmetries between sellers and customers are prone to fraudulent behavior of sellers and resulting market inefficiencies. We present the first model that considers both diagnostic uncertainty of sellers...

Persistent link: https://www.econbiz.de/10012313962

Too lucky to be true : fairness views under the shadow of cheating

Bortolotti, Stefania; Soraperra, Ivan; Sutter, Matthias; … - 2017

inequality, such as differences in effort, luck, or opportunities. We study how fairness views and the extent of redistribution … outcome. Although third parties cannot verify cheating, we find that the mere suspicion of cheating changes fairness views of ….e., participants who never redistribute. Without cheating opportunities, libertarian fairness views dominate, while egalitarian views …

Persistent link: https://www.econbiz.de/10011704184

The Effect of Language on Economic Behavior: Experimental Evidence from Children's Intertemporal Choices

Sutter, Matthias; Angerer, Silvia; Rützler, Daniela; … - 2015

According to Chen’s (2013) linguistic-savings hypothesis, languages which grammatically separate the future and the present (like English or Italian) induce less future-oriented behavior than languages in which speakers can refer to the future by using present tense (like German). We...

Persistent link: https://www.econbiz.de/10011388218

An experimental study on the effects of communication, credibility, and clustering in network games

Charness, Gary; Feri, Francesco; Meléndez-Jiménez, … - 2019

The effectiveness of social interaction depends strongly on an ability to coordinate actions efficiently. In large networks, such coordination may be very difficult to achieve and may depend on the communication technology and the network structure. We examine how pre-play communication and...

Persistent link: https://www.econbiz.de/10012052765

Collective Intertemporal Decisions and Heterogeneity in Groups

Glätzle-Rützler, Daniela; Lergetporer, Philipp; … - 2019

Many important intertemporal decisions, such as investments of firms or households, are made by groups rather than individuals. Little is known what happens to such collective decisions when group members have different incentives for waiting, because the economics literature on group decision...

Persistent link: https://www.econbiz.de/10012052822

Trustworthiness in the Financial Industry

Gill, Andrej; Heinz, Matthias; Schumacher, Heiner; … - 2020

The financial industry has been struggling with widespread misconduct and public mistrust. Here we argue that the lack of trust into the financial industry may stem from the selection of subjects with little, if any, trustworthiness into the financial industry. We identify the social preferences...

Persistent link: https://www.econbiz.de/10012269571