People can become less cooperative when threatened with sanctions, and researchers have pointed to both 'intentions' and incentives as sources of this effect. This paper reports data from a novel experimental design aimed at determining the relative importance of intentions and incentives in...

We investigate the effect of non-binding pre-play communication in experiments with simple two-player coordination games. We reproduce the results of other studies in which play converges to a Pareto-dominated equilibrium in the absence of communication, and communication moves outcomes in the...

This article is an attempt to refine the theoretical discussion of the concept of learning in economic models. The article introduces a series of critical reflections on the way in which the concept of learning traditionally has been applied in modern economic theory. Alternatively, elements of...

Recently, the theory of informational cascades has been tested in an experiment by Anderson and Holt (1997) who report that their data support the theory amazingly well. In this note we report on an experiment designed to find out whether observed cascades are indeed due to rational Bayesian...

There was (and still is) a lot of speculation about the current performance and structure of the Pietermaritzburg and uMgungundlovu District economy and business environment. The debate is mainly driven by haphazard observations and subjective feelings, thus hampering effective and efficient...

This paper compares the performance of direct negotiation, double auction, and a two-sided combinatorial call market for consolidating fragmented land. Experimental results suggest direct negotiation produces higher efficiencies than other mechanisms when 1) all commodities need to be traded to...

In online interactions in general, but especially in interactions between buyers and sellers on internet-auction platforms, the interacting parties must deal with trust and cooperation problems. Whether a rating system is able to foster trust and cooperation through reputation and without an...

We seek to isolate in the laboratory factors that encourage and discourage the sunk cost fallacy. Subjects play a computer game in which they decide whether to keep digging for treasure on an island or to sink a cost (which will turn out to be either high or low) to move to another island. The...

The traditional view in economics is that individuals respond to incentives, but absent strong incentives to the contrary selfishness prevails. Moreover, this “greed is good” approach is deemed “rational” behavior. Nevertheless, in daily interactions and in numerous laboratory studies, a...

The uncertainty of predicting stock prices emanates pre-eminent concerns around the functionality of the stock market. The possibility of utilising Genetic Algorithms to forecast the momentum of stock price has been previously explored by many optimisation models that have subsequently addressed...