Contrary to the models of deterministic life cycle saving, we take itfor granted that uncertainty of one's future is the essential problem ofsaving decisions. However, unlike the stochastic life cycle models, we capturethis crucial uncertainty by a non-Bayesian scenario-based...

This paper analyses individual information acquisition in an ultimatum game with aprioriunknown outside options. We find that while individual play seems to accord reasonablywell with the distribution of empirical behavior, contestants seem to grossly overweighthe value of information. While...

This experimental study, first, compares the individual valuations of two risk reduction mechanisms: self-insurance and self-protection. Second, it investigates these valuations when the loss amount is ambiguous, and compare these values with valuations when loss amounts are known. results...

Parimutuel betting markets are simplified financial markets, andcan thus provide a clearer view of pricing issues which are more complicatedelsewhere. Though empirical studies generally conclude thatthe parimutuel betting markets are surprisingly efficient, it is alsofound that for horses with...

In the Yes/No game, like in the ultimatum game, proposer and respondercan share a monetary reward. In both games the proposer suggests a rewarddistribution which the responder can accept or reject (yielding 0-payoffs). Thegames only differ in that the responder does (not) learn the suggested...

Online reputation -"feedback"- mechanism aim to mitigate the moral hazard problem associated with spatially distant exchange among strangers by providing traders with the type of information available in small groups, where members are frequently involved in another's dealings. We compare...

We study two person-betting games with inconsistent commonly know beliefs, using an experimentalapproach. In our experimental games, participants bet against one another, each bettorchoosing one of two possible outcomes, and payoff odds are know at the time bets are placed.Bettors’ beliefs are...

We analyse pricing, e¤ort and tipping decisions in the online service GoogleAnswers. While users set a price for the answer to their question ex ante, theycan additionally give a tip to the researcher ex post.In line with the related experimental literature we …nd evidence that tippingis...

Unlike previous attempts to implement cooperation in a prisoners’ dilemma gamewith an infinite horizon in the laboratory, we focus on extended prisoners’ dilemmagames in which a second (pure strategy) equilibrium allows for voluntary cooperationin all but the last round. Our four main...

We analyze the effects of asymmetric information concerning thesize of a pie on proposer behavior in three different bargaining situations:the ultimatum game, the Yes-No-game and the dictator game.Our data show that (a) irrespective of the information condition, proposergenerosity increases with...