In our experiment, a dictator game variant, the reported outcome of a die roll determines the endowment (low/high) in a subsequent dictator game. In one treatment the experimenter is present and no cheating is possible, while in another subjects can enter the result of the roll themselves. Moral...

Envy is often the cause of mutually harmful outcomes. We experimentally study the impact of envy in a bargaining setting in which there is no conflict in material interests: a proposer, holding the role of residual claimant, chooses the size of the pie to be shared with a responder, whose share...

This paper considers a procedurally fair provision mechanism that allows members of a small group to determine, through their bids, which project to implement. Previous experiments with (only) costly projects have demonstrated that the mechanism is efficiency enhancing. Our experiment tests...

The market for retail financial products (e.g., investment funds or insurances) is marred by information asymmetries. Clients are not well informed about the quality of these products. They have to rely on the recommendations of advisors. Incentives of advisors and clients may not be aligned,...

The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5-$18). Magnatune's comprehensive pre-purchase access facilitates music discovery and allows an informed...

Group membership is a powerful determinant of social behaviour in a variety of experimental games. Its effect may be channelled primarily via the beliefs of group members, or directly change their social preferences. We report an experiment with a prisoner's dilemma with multiple actions, in...

Previous research provides compelling evidence that defaults affect individual behaviour in several domains. However, evidence of their influence in strategic interaction is scant. We experimentally investigate the effect of defaults on contributions to a public good and attempt to shed light on...

Like avoiding labor protection laws via foreign subcontractors, banning deception in economic experiments does not exclude experiments with participants in the role of experimenters who, similar to properly incentivized subcontractors, can gain by deceiving those in the role of proper...

Take-it or leave-it offers are probably as old as mankind. Our objective here is, first, to provide a, probably subjectively colored, recollection of the initial ultimatum game experiment, its motivation and the immediate responses. Second, we discuss extensions of the standard ultimatum...

A group of actors, individuals or firms, can engage in collectively providing projects which may be costly or generating revenues and which may benefit some and harm others. Based on requirements of procedural fairness, we derive a bidding mechanism determining endogenously who participates in...