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Is competition perceived as a fair procedure? We report data from laboratory experiments where a powerful buyer can trade with one of several sellers. Sellers who feel shortchanged can engage in counterproductive behavior to punish the buyer. We find that the same unfavorable terms of trade...
Persistent link: https://www.econbiz.de/10010361425
identify where moral behavior is reflected in a market. Recent work has suggested that falling prices in markets with … with an externality, but that market prices are hardly different between markets with or without an externality. We also …Markets are ubiquitous in our daily life and, despite many imperfections, they are a great source of human welfare …
Persistent link: https://www.econbiz.de/10011515418
payments by a public agency if they increased the annual kidney supply by six percentage points, and private transactions for a …
Persistent link: https://www.econbiz.de/10011539004
In the nineties, average firm size decreased, organisations decentralized, and workers preferences shifted from large to small firms. Our model identifies the economic forces behind this trend. Small firms with little capital at risk are subject to risk-shifting. They realize more of their...
Persistent link: https://www.econbiz.de/10011539048
that low procurement prices, which allocate most of the surplus from trade to the buyer, trigger significantly less …
Persistent link: https://www.econbiz.de/10011405188
Many information structures generate correlated rather than mutually independent signals, the news media being a prime example. This paper shows experimentally that in such contexts many people neglect these correlations in the updating process and treat correlated information as independent. In...
Persistent link: https://www.econbiz.de/10010211474
This paper studies the stability of socially responsible behavior in markets. We develop a laboratory product market in …
Persistent link: https://www.econbiz.de/10010212675
. First, we discuss to which extent competition can emerge in digital markets and show which forms it can take. In particular … competition in platform markets. Second, we analyse competition policy issues and discuss how rules designed for standard markets … can perform in two-sided markets. We show that multi-sided externalities create new opportunities for anti …
Persistent link: https://www.econbiz.de/10012258099
This paper studies the impact of a key feature of competitive markets on moral behavior: the possibility that a … on the effect of markets on morals. …
Persistent link: https://www.econbiz.de/10011735983
I consider a market with two firms, a minority group of customers, and a bigoted (racist, ethnocentric, xenophobic, or sexist) majority group of customers. There exists a Nash equilibrium with full segregation in which a low-price firm serves only the minority and a high-price firm serves only...
Persistent link: https://www.econbiz.de/10014284743