In this paper we measure experienced guilt in a prisoner’s dilemma experiment with pre-play communication. We find that feelings of guilt only arise in the case of unilateral defection and that they are stronger when players have mutually agreed to cooperate. We also find that fining...

We report experimental results on exclusive dealing inspired by the literature on "naked exclusion". Our key findings are: First, exclusion of a more efficient entrant is a widespread phenomenon in lab markets. Second, allowing incumbents to discriminate between buyers increases exclusion rates...

One of the long-standing puzzles in economics is why wages do not fall sufficiently in recessions so as to avoid increases in unemployment. Put differently, if the competitive market wage declines, why don't employers simply force their employees to accept lower wages as well? As an alternative...

We analyze the Spence education game in experimental markets.We compare a signaling and a screening variant, and we analyze the e®ect of increasing the number of employers from two to three.In all treatments, there is a strong tendency to separate.More efficient workers invest more often and...

In this paper, we address the concept of trust by combining (i) the self-reported trust and belief in trustworthiness of others from a general unpaid questionnaire, (ii) choices made in a social valuation task designed to measure subjects' distributional preferences, (iii) strategies submitted...