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laboratory experiment. In theory, the chopstick auction has an efficient equilibrium and is revenue equivalent with the second …-price sealed-bid auction in which the exposure problem is not present. In the experiment, however, we find that the 'chopstick …
Persistent link: https://www.econbiz.de/10013317485
Higher-order risk effects play an important role in examining economic behavior under uncertainty. A precautionary demand for saving has been linked to the property of prudence and the property of temperance has been used to show how the presence of an unavoidable risk affects one's behavior...
Persistent link: https://www.econbiz.de/10012768261
We provide evidence on how two important types of institutions - dismissal barriers, and bonus pay - affect contract enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a strong negative impact on worker performance, and...
Persistent link: https://www.econbiz.de/10012772046
Economists long considered money illusion to be largely irrelevant. Here we show, however, that money illusion has powerful effects on equilibrium selection. If we represent payoffs in nominal terms, choices converge to the Pareto inefficient equilibrium; however, if we lift the veil of money by...
Persistent link: https://www.econbiz.de/10012712069
In this paper we experimentally investigate whether partial coercion can in combination with conditional cooperation … finding is that in our setting conditional cooperation is not a strong enough force to increase contribution levels. Although … cooperation and puts some doubt on the idea that it is crucial in overcoming social dilemma problems …
Persistent link: https://www.econbiz.de/10013120907
effects of participation in markets on non-market activities requiring cooperation. In our setup, market interaction takes …-Strangers. We compare the efficiency of cooperation with and without market experience controlling for earnings, allowing us to … effect on cooperation efficiency in Market-Partners, that is among those who had to compete with each other on on the same …
Persistent link: https://www.econbiz.de/10012970051
We investigate whether there is a link between conditional cooperation and betrayal aversion. We use a public goods …
Persistent link: https://www.econbiz.de/10013018458
individuals' cooperation preferences in one experiment and use them - as well as subjects' elicited beliefs - to explain …We provide a test of the role of social preferences and beliefs in voluntary cooperation and its decline. We elicit … based on this data, we show that the decline of cooperation can be driven by the fact that most people have a preference to …
Persistent link: https://www.econbiz.de/10013316430
We develop a model that relates self-control and conflict identification to cooperation patterns in social dilemmas. As … predicted, we find in a laboratory public goods experiment a robust association between stronger self-control and higher levels … of cooperation. This means that there is evidence for an impulse to be selfish and that cooperative behavior requires …
Persistent link: https://www.econbiz.de/10010639421
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 … cooperation. We find that the possibility of being punished increases the strength of conditional cooperation. At the same time …
Persistent link: https://www.econbiz.de/10012912687