While people on all sides of the political spectrum were amazed that Donald Trump won the Republican nomination this paper demonstrates that Trump's victory was not a crazy event but rather the equilibrium outcome of a multi-candidate race where one candidate, the buffoon, is viewed as likely to...

We investigate fairness preferences in matching mechanisms using a spectator design. Participants choose between the Boston mechanism or the serial dictatorship mechanism (SD) played by others. In our setup, the Boston mechanism generates justified envy, while the strategy-proof SD ensures...

Klassischerweise üben Vertreter der Wirtschaft sich jenseits der unmittelbaren Betroffenheit weitgehend parteipolitischer Enthaltsamkeit. Da sich in der Bundesrepublik mit der Alternative für Deutschland (AfD) eine von ihrer wirtschaftspolitischen Programmatik her liberal-rechtspopulistische...

Victorious alliances often fight about the spoils of war. We consider experimentally when members of victorious alliances accept a peaceful division of the spoils, and when they fight against each other, and how the inability to commit to a peaceful division affects their effort contributions in...

In federal countries, competence for policy matters is often shared between various levels of government. As only overall outcomes are observed, this might blur accountability by decreasing voters' ability to infer information about the performance of their leaders. In this article, we analyse...

This paper considers evolutionarily stable decisions about whether to initiate violent conflict rather than accepting a peaceful sharing outcome. Focusing on small sets of players such as countries in a geographically confined area, we use Schaffer's (1988) concept of evolutionary stability. We...

We study endogenous group formation in tournaments employing experimental threeplayer contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, players who are committed to expending...

Ostdeutschen AfD-Landesverbände sind radikaler aufgestellt als ihre westdeutschen Pendants und ihre politische Durchschlagskraft könnte sich bei den Landtagswahlen in Sachsen, Thüringen und Brandenburg im September noch vergrößern. Trotz der mittlerweile vielfachen Warnungen vor nicht...

This paper considers terrorism as an extortion activity. It uses tools from the theory of extortion and from conflict theory to describe how terrorism works, why terrorism is a persistent phenomenon, why terrorism is a violent phenomenon, and how retaliation affects the outcome. The analysis...