Our experimental design mimics a traditional evolutionary game framework where players are matched pairwise to play a symmetric 3x3 bimatrix game which has two Nash equilibria. One equilibrium is an evolutionary stable state, or ESS; the other is an equilibrium in dominated strategies. Our...

In an experimental study auction procedures of variable rate tenders, which are prevalent in practice, the discriminatory American auction and the competitive Dutch auction, are investigated on a repeated basis. At the center of this study stands the comparison of the two auction formats with...

This paper studies budget processes, both theoretically and experimentally. We give a sufficient condition for top-down and bottom-up budget processes to have the same voting equilibrium. Furthermore, at a voting equilibrium, it is not always true, as often presumed, that a top-down budget...

We investigate the problem of optimally timing production schedules in an emissions trading regime that does not allow the transfer of unused allowances into future periods. We show that companies that produce storable goods partially shift the production to prior periods and imitate - by...

A Systematic Comparison of Pension Annuities and Self-Annuitization under the Criterion of Capital Exhaustion is presented. The present paper further develops the paper of Albrecht/Goebel (SFB 504 discussion paper 00-31). New features are the evaluation of real estate funds, the consideration of...

We present a series of experimental coordination games with a payoff-dominant and a risk-dominant Nash equilibrium. We examine in how far local interaction structures have effects on players' strategy choices. Our three major observations are the following: First, local interaction with open...

In public goods experiments where subjects may change groups, we observe a continual flight of the more cooperative subjects from the less cooperative ones. The less cooperative subjects attempt to enter cooperative groups in order to free-ride on their contributions.

In an experimental study the auction procedure of the fixed rate tender is investigated with which the main refinancing operation of the Eurosystem was carried out in the past. In June 2000 the fixed rate tender was replaced by the 'American' variable rate tender. This change was occasioned by...

In game-theoretical models with local interaction it is usually assumed that fixed local interaction structures are imposed exogenously and do not evolve during the course of the game. However, this assumption does not make much sense in economics. We model the evolution of interaction...

Monopolies are frequently characterized by the following allocation rule: if the total demand is not greater than the supply, each buyer receives her desired amount in full; and if the total demand exceeds the supply, the supply is distributed proportionally according to the individual desired...