We construct a simple three person trust game with one trustor and two trustees. The trustor has the possibility to either trust both trustees or none, while the trustees make their decisions either sequentially or simultaneously, depending on the treatment. When trustees play sequentially,...

The emergence of Pay-What-You-Want (PWYW) business models as a successful alternative to conventional uniform pricing brings up new questions related to the task of pricing. We investigate the effect of a reduction of privacy on consumers' purchase decisions (whether to buy, and if so how much...

In-group favoritism in social dilemma situations is one of Social Identity Theory's main findings. We investigate what causes the in-group bias: is it merely due to group affiliation or, alternatively, is guilt-aversion moderating the strength of in-group favoring? We induce group membership in...

Actual behaviour is influenced in important ways by moral emotions, for instance guilt or shame. The framework of dynamic psychological games allows the economic modelling of such emotions. Our experimental study uses psychological scales to measure individuals’ dispositions to experience...