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This paper studies how organizational design affects moral outcomes. Subjects face the decision to either kill mice for money or to save mice. We compare a Baseline treatment where subjects are fully pivotal to a Diffused-Pivotality treatment where subjects simultaneously choose in groups of...
Persistent link: https://www.econbiz.de/10009763127
Our study compares individual and team bidding in standard auction formats: first-price, second-price and ascending-price (English) auctions with independent private values. In a laboratory experiment, we find that individuals overbid more than teams in first-price auctions and deviate more from...
Persistent link: https://www.econbiz.de/10012500699
A growing experimental literature studies the endogenous choice of institutions to solve cooperation problems arising in prisoners' dilemmas, public goods games, and common pool resource games. Participants in these experiments have the opportunity to influence the rules of the game before they...
Persistent link: https://www.econbiz.de/10012010646
A large body of evidence suggests that people are willing to sacrifice personal material gain in order to adhere to a moral motive such as fairness or truth-telling. Yet less is known about what happens when moral motives are in conflict. We hypothesize that in such situations, individuals...
Persistent link: https://www.econbiz.de/10011996709
and statements, and we investigate whether communication improves information aggregation and the accuracy of group … decisions. Our findings suggest that the effect of communication depends on the underlying accuracy of individual judgments …. Communication improves accuracy when individuals tend to be incorrect, but diminishes it when individuals are likely to be correct …
Persistent link: https://www.econbiz.de/10014495051
We derive a necessary and a sufficient condition for Nash implementation with a procedurally fair mechanism. Our result has a nice analogue with the path-braking result of Maskin [Nash equilibrium and welfare optimality, Rev. Econ. Stud. 66 (1999) 23-38.], and therefore, it allows us to give a...
Persistent link: https://www.econbiz.de/10012503061
Following the notion that organizations often face public good dilemmas when collective action is needed, we use a real-time provision-point mechanism to experimentally explore the process of achieving cooperative equilibria. Specifically, besides exploring group outcomes, we identify individual...
Persistent link: https://www.econbiz.de/10011900072
Unfavorable news are often delivered under the disguise of vagueness. Our theory-driven laboratory experiment investigates this strategic use of vagueness in voluntary disclosure and asks whether there is scope for policy to improve information transmission. We find that vagueness is profitably...
Persistent link: https://www.econbiz.de/10013191455
communication, we also find systematic deviations from optimal behavior in how the communicated information is used. Specifically …
Persistent link: https://www.econbiz.de/10011872542
To address the impact of regulation on ethical concerns of consumers, we study the example of minimum wages. In our experimental market, consumers have monopsony power, firms set prices and wages, and workers are passive recipients of a wage payment. We find that the majority of consumers...
Persistent link: https://www.econbiz.de/10012236843