In an experimental study the auction procedure of the fixed rate tender is investigated with which the main refinancing operation of the Eurosystem was carried out in the past. In June 2000 the fixed rate tender was replaced by the 'American' variable rate tender. This change was occasioned by...

In game-theoretical models with local interaction it is usually assumed that fixed local interaction structures are imposed exogenously and do not evolve during the course of the game. However, this assumption does not make much sense in economics. We model the evolution of interaction...

We present a series of experimental coordination games with a payoff-dominant and a risk-dominant Nash equilibrium. We examine in how far local interaction structures have effects on players' strategy choices. Our three major observations are the following: First, local interaction with open...

In public goods experiments where subjects may change groups, we observe a continual flight of the more cooperative subjects from the less cooperative ones. The less cooperative subjects attempt to enter cooperative groups in order to free-ride on their contributions.

Monopolies are frequently characterized by the following allocation rule: if the total demand is not greater than the supply, each buyer receives her desired amount in full; and if the total demand exceeds the supply, the supply is distributed proportionally according to the individual desired...

A population of players is considered in which each agent can select her neighbors in order to play a 2x2 Hawk-Dove game with each of them. We design our experiment in continuous time where participants may change their Hawk-Dove action and/or their neighborhood at any point in time. We are...