This paper investigates market failures due to strategic delays. We test experimentally a discrete model of dynamic investment, where two privately informed agents have an option to invest at the time of their choice in the presence of waiting costs. The equilibrium outcome of our experimental...

Are commonly known beliefs essential for bidding behavior in asymmetric auctions? Our experimental results suggest that not informing participants how values are randomly generated does not change behavior much and may even make it appear more rational.

A novel two-person "charity game" is used to experimentally investigate whether anticipation of help crowds out incentives to work, and therefore impulses to help. We distinguish two treatments differing in whether the causes of neediness are verifiable or not. Helping behavior does not vary...