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the deterrence hypothesis, namely that crime is weakly decreasing in deterrent incentives, i.e. severity and probability … of punishment. In our experiment, subjects can steal from another participant's payoff. Deterrent incentives vary across … incentives, subjects steal more the stronger the incentives. We observe two types of subjects: selfish subjects who act according …
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We implement the Rawlsian veil of ignorance in the laboratory. Our experimental design allows separating the effects of risk and social preferences behind the veil of ignorance. Subjects prefer more equal distributions behind than in front of the veil of ignorance, but only a minority acts...
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We analyze a two-stage game between two heterogeneous players. At stage one, common risk is chosen by one of the players. At stage two, both players observe the given level of risk and simultaneously invest in a winner-take-all competition. The game is solved theoretically and then tested by...
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The behavioral relevance of non-binding defaults is well established. While most research has focused on decision makers’ responses to a given default, we argue that this individual decision making perspective is incomplete. Instead, a comprehensive understanding of default effects requires to...
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