This paper derives and justifies a procedurally fair bidding mechanism and reviews experiments that apply the mechanism to public projects provision. In the experiments, not all parties benefit from provision, and the projects' costs can be negative. The experimental results indicate that the...

We study the interplay of inequality and trust in a dynamic game, in which trust increases efficiency and thus allows higher growth of the experimental economy in the future. We find that trust is initially high in a treatment starting with equal endowments, but decreases over time. In a...

Most large-scale economic experiments use a between-subjects random incentive system-BRIS-which selects a subset of the participants at random and offers real payment only to the selected participants. We evaluate the relative impact of nominal payoffs and the selection probability on the...

This paper revisits and extends the experiment on the solidarity game by Selten and Ockenfels (1998). We replicate the basic design of the solidarity game and extend it in order to t test the robustness of the ‘fixed total sacrifice’ effect and the applied strategy method. Our results only...

We discuss several issues of organizing economic laboratory experiments like subject pool, recruitment, scheduling and show how we solved them with the help of the Online Recruitment System for Economic Experiments (ORSEE). This paper may serve as a manual for the system. A test system has been...

We study the interplay of inequality and trust in a dynamic game, in which trust increases efficiency and thus allows higher growth of the experimental economy in the future. We find that trust is initially high in a treatment starting with equal endowments, but decreases over time. In a...

Relying on the specific example of ultimatum bargaining experiments this paperexplores the possible role of empirical knowledge of behavioural “norm(ative)facts” within the search for (W)RE – (Wide) Reflective Equilibria on normativeissues. Assuming that “pro-social” behaviour...

Several division rules have been proposed in the literature regarding how anarbiter should divide a bankrupt estate. Different rules satisfy different sets ofaxioms, but all rules satisfy claims boundedness which requires that no contributorbe given more than her initial contribution. This paper...