Experimentalists have been so sure of the incentive compatibility of this mechanism in practice that they often explicitly inform their subjects that it is in the respondents' interest to report their true reservation prices, or words to that effect. However, as is reported here, it turns out...

Preference reversal (PR) means that an individual's choice a direct reflection of his preferences between two options is inconsistent with the ranking of his (selling) reservation prices an indirect reflection of his preferences. Such choice/reservation-price inconsistency is potential...

A large group of experimentalists have analyzed the nature of free riding in the context of so-called public exchanges, a laboratory device for investigating the consequences of various aspects of non-rivalry in consumption related to voluntary public goods. However, there have been few attempts...

Although certain government policies might be tested in controlled experiments during a pilot phase, such tests are rarely undertaken. Ideally, a policy could be tried, when feasible and meaningful, on a random subset of areas, firms or consumers exposed to the policy and be compared with the...

A subset of the world's countries may wish to commit themselves to stringent emission targets in an attempt to influence other countries to follow suit, thereby bringing about a significant reduction in the threat to the global climate. Moreover, if the pioneering countries were to connect a...