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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
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
correlated with giving in the absence of risk. We find limited support for existing models of ex-post and ex-ante fairness. Our …
Persistent link: https://www.econbiz.de/10011584886
We study a situation where two players first choose a sharing rule, then invest into a joint production process, and then split joint benefits. We investigate how social preferences determine investments. In our experiment we find that even the materially disadvantaged player cares more for...
Persistent link: https://www.econbiz.de/10010266106
The completeness axiom of choice has been questioned for long, and in response, theoretical models of decision making allowing for incomplete preferences have been developed. So far the theoretical accomplishments have however not been paired with empirical evidence on the actual existence of...
Persistent link: https://www.econbiz.de/10010531832
An important element for the public support of policies is their perceived justice. At the same time most policy choices have uncertain outcomes. We report the results of a first experiment investigating just allocations of resources when some recipients are exposed to uncertainty. Although,...
Persistent link: https://www.econbiz.de/10010318799