In many business transactions, in labor-management relations, in international conflicts, and welfare state reforms claims acquired in the past seem to create strong entitlements that shape current negotiations. Despite their importance, the role of entitlements in negotiations has not received...

Does the supply of a welfare state create its own demand? Many economic scholars studying welfare arrangements refer to Say's law and insinuate a self-destructive welfare state. However, little is known about the empirical validity of these assumptions and hypotheses. We study the dynamic effect...

A burgeoning literature in economics has started examining the role of social norms in explaining economic behavior. Surprisingly, the vast majority of this literature has studied social norms in asocial decision settings, where individuals are observed to act in isolation from each other. In...

The prisoner's dilemma (PD) is arguably the most important model of social dilemmas, but our knowledge about how a PD’s material payoff structure affects cooperation is incomplete. In this paper we investigate the effect of variation in material payoffs on cooperation, focussing on one-shot PD...

We experimentally examine how the incentive to defect in a social dilemma affects conditional cooperation. In our first study we conduct online experiments in which subjects play eight Sequential Prisoner's Dilemma games with payoffs systematically varied across games. We find that few second...