Whether people of differing types can live happily together is one of the most important social and political questions concerning urban areas. From a variety of theoretical perspectives, such mixing seems extremely unlikely. While the theoretical result seems well supported in the context of...

We solve and test experimentally a global-games model of speculative attacks where agents can choose whether to read, at a cost, a payoff irrelevant (sunspot) announcement. Assuming that subjects exogenously believe some others to follow sunspots, we provide conditions for a unique equilibrium...

Lecture audiences and students were asked to respond to virtual decision and game situations at gametheory.tau.ac.il. Several thousand observations were collected and the response time for each answer was recorded. There were significant differences in response time across responses. It is...

The public acceptability of a carbon price depends on how the revenues from carbon pricing are used. In a fully incentivised experiment with a large representative sample of the German population, we compare five different revenue recycling schemes and show that support for a carbon price is...

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...

Experimental sealed bid first price auctions with private values in which feedback onthe losing bids is provided yield lower revenues than auctions where this feedback isnot given. Furthermore, bids tend to be above the equilibrium predictions for riskneutral bidders. While the latter...

Sick pay is a common provision in most labor contracts. This paperemploys an experimental gift-exchange environment to explore two relatedquestions using both managers and undergraduates as subjects.First, do workers reciprocate generous sick pay with higher effort? Second,do firms benefit from...

Internal inconsistencies are so commonplace in studies using the contingent valuation method(CVM) that it has been argued that that method should be abandoned as a means of preferenceelicitation in favour of other methods such as standard gambles (SG). The experiment described inthis paper finds...

This Discussion Paper documents a survey conducted in rural China in 2005. A multi-topic survey funded by the Sino-German international Training Program Sustainable Resource Use in North China, the project covers farm management, land property rights and rural credit access on the North China...

Is there a way of matching donations that avoids crowding out? We introduce a novel matching method where the matched amount is allocated to a different project, present some simple theoretical considerations that predict reduced crowding out or crowding in (depending on the degree of...