Showing 1 - 9 of 9
Applying an indirect evolutionary approach with endogenous preference formation, we show that a legal system can induce players to reward trust even if material incentives dictate to exploit trust. By analyzing the crowding out or crowding in of trustworthiness implied by various verdict rules,...
Persistent link: https://www.econbiz.de/10005764393
Bidding rules that guarantee procedural fairness may induce more equilibrium bidding and moderate other-regarding concerns. Here, we investigate procedural fairness as in Güth (2011). In our experiment, we assume commonly known true values and only two bidders to implement a best-case scenario...
Persistent link: https://www.econbiz.de/10010903173
Standard economic explanations of good conduct in trade rely almost exclusively on future-directed extrinsic motivations induced by material incentives. But intrinsic motives to behave trustworthily and to punish untrustworthiness do support trade. In our model, intrinsically motivated players...
Persistent link: https://www.econbiz.de/10005241787
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
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
Even if contract enforcers are as opportunistic as ordinary traders, a system of adjudication can increase the degree to which contractual obligations on large anonymous markets are fulfilled. Only if arbitrators receive a fixed income, occasional mistakes will not favour the untrustworthy. It...
Persistent link: https://www.econbiz.de/10005823388
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
no abstract available.
Persistent link: https://www.econbiz.de/10005764414
no abstract available
Persistent link: https://www.econbiz.de/10005582064