Experimental evidence and economic examples like Basu's (1984) taxi-driver problem illustrate that many people are honest (or good) even when beyond the reach of the law, and without repeated interactions or reputation effects. We provide game-theoretic underpinnings of the level of goodness in...

Definitive judgment about the quality of decision-making is made difficult by twin problems of measurement and identification. A measure of decision-making quality is hard to formalize, to quantify, and to make practical for use in a variety of choice environments; and it is difficult to...

Recent empirical research has established what many assumed - few people read form contracts. This research employs an online experimental design to fill gaps in the literature by asking two important questions: (1) To what extent does information about the exchange beyond the contract...

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...

This paper develops a model of community level collective action to explain the evolution of institutional solutions to social dilemmas. The assumptions of the model are based on evidence from ethnographic and experimental studies that show that the degree of excludability of a common pool...

Withdrawal rights protect buyers in distance selling, for example when ordering via the Internet. After introducing such a law in Germany the proportion of returned goods drastically increased although most sellers had already offered a return option before. We experimentally investigate...

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...