The principles based on purposeful behavior, which have always been at the foundations of economics, began to expand to explain the acquisition of information and its use, including both the information that might be carried in the actions of others and in the behavior of markets. This evolution...

In many experimental studies it has been found that increasing the level of rewards, while not always significantly improving average support for the predictive hypothesis, nevertheless reduces the variance of the observations around the predicted outcome. Smith and Walker model the decision as...

This chapter discusses that the subjects differ in social value orientation as measured in the pre-test. This chapter also describes that the contributions in the first periods of the public good game are positively correlated to the value orientation. The success of social interaction in the...

There seems to be little doubt that the presumptive absence of hypothetical bias in CVM surveys is invalid. It is invalid as a general proposition, since the experiments surveyed here provide special cases when it is demonstrably false. The importance of these experimental results is that they...

The studies were designed to test whether active naturally-occurring markets could be manipulated experimentally in a way that permitted statistically powerful identification of whether manipulation generally works (rather than anecdotal evidence). The studies also serve as a reminder that true...

The presence of public goods seriously challenges traditional or natural solutions for the allocation of private goods. Important policy questions, of whether this chapter can rely on the market to provide optimal amounts of public goods such as air pollution, and how much we can rely on natural...