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Investment and Bargaining in Joint Ventures: A Family Decision Making Experiment

Güth, Werner; Ivanova-Stenzel, Radosveta; Sutter, Matthias - In: Journal of Institutional and Theoretical Economics (JITE) 159 (2003) 2, pp. 323-323

Bilateral joint ventures, such as marriage, are economically inspired by their prospects of labor division and specialization. However, specialization makes the partnerwho investsmore in relation-specificqualificationsmore exploitable (holdup problem). In a two-person experiment we study...

Persistent link: https://www.econbiz.de/10005241801

Voluntary versus Compulsory Solidarity: Theory and Experiment

Güth, Werner; Sutter, Matthias; Verbon, Harrie - In: Journal of Institutional and Theoretical Economics (JITE) 162 (2006) 2, pp. 347-363

We present an overlapping-generations model with two interacting teams, where young team members earn an income, whereas old team members depend on either intrateam transfers from young members (voluntary solidarity) or tax-financed transfers (compulsory solidarity). We derive the individually...

Persistent link: https://www.econbiz.de/10005764388

Rules (of Bidding) to Generate Equal Stated Profits: An Axiomatic Approach

Güth, Werner - In: Journal of Institutional and Theoretical Economics (JITE) 167 (2011) 4, pp. 608-612

Although one may hope to achieve equality of stated profits without enforcing it, one may not trust in such voluntary equality seeking and rather try to impose rules (of bidding) guaranteeing it. Our axiomatic approach is based on envy-free net trades according to bids, which, together with the...

Persistent link: https://www.econbiz.de/10009421918

Reasons for Conflict: Lessons from Bargaining Experiments

Falk, Armin; Fehr, Ernst; Fischbacher, Urs - In: Journal of Institutional and Theoretical Economics (JITE) 159 (2003) 1, pp. 171-171

In this paper we experimentally study the effects of fairness, spite, and reputation formation on conflict. We show … that fairness preferences are a potential source of conflict and that intentions play an important role in the perception … of fairness. Further, we show that feelings of spite may affect the occurrence of conflict. Finally, we study reputation …

Persistent link: https://www.econbiz.de/10005582041