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This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...
Persistent link: https://www.econbiz.de/10011398368
The role of product market reforms in achieving the objective of higher employment and growth has recently received much attention amongst academics. The aim of this paper is to analyse some of the channels through which cross-market effects come about and to assess their policy relevance. The...
Persistent link: https://www.econbiz.de/10003202265
The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However, most R&D investment projects are open to competing...
Persistent link: https://www.econbiz.de/10003872189
competition, and/or the behavioral impacts of competition. Psychologically, a competitive environment alters incentives for ….e., succeeding in a competition is valuable per se. We design an experiment that allows us to disentangle financial and psychological …
Persistent link: https://www.econbiz.de/10013288029
We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public … to the steady state. While fiercer competition (lower transportation costs or less sluggish demand) leads to higher … quality in both solutions, the quality response to increased competition is weaker when players use feedback strategies …
Persistent link: https://www.econbiz.de/10003935230
This paper investigates how group membership and competition among trustors interact with trust and trustworthiness in … competition leads to a decrease in trustworthiness, especially among partners. We argue that once competition comes into play … reduces reciprocity. -- trust ; reciprocity ; investment game ; group membership ; competition …
Persistent link: https://www.econbiz.de/10003935235
Persistent link: https://www.econbiz.de/10003495802
Wars of conquest and wars of independence are characterized by an asymmetric payoff structure: one party gets aggregate production if it wins, and its own production if it loses, while the other party gets only its own production if it wins, and nothing if it loses. We study a model of war with...
Persistent link: https://www.econbiz.de/10009754525
We analyze equilibria of two-player contests where players have intention-based preferences. We find that players invest more effort compared to the case with selfish preferences and are even willing to exert effort when the monetary value of the prize converges to zero. As a consequence,...
Persistent link: https://www.econbiz.de/10009702885
I present a two-player nested contest which is a convex combination of two widely studied contests: the Tullock (lottery) contest and the all-pay auction. A Nash equilibrium exists for all parameters of the nested contest. If and only if the contest is sufficiently asymmetric, then there is an...
Persistent link: https://www.econbiz.de/10009659345