In this paper we import a mainstream psycholgical theory, known as attachment theory, into economics and show the implications of this theory for economic behavior by individuals in the ultimatum bargaining game. Attachment theory examines the psychological tendency to seek proximity to another...

A network market is a market in which the benefit each consumer derives from a good is an increasing function of the number of consumers who own the same or similar goods. A major obstacle that plagues the introduction of a network good is the ability to reach critical mass, namely, the minimum...

We introduce human traders into an agent based financial market simulation prone to bubbles and crashes. We find that human traders earn lower profits overall than do the simulated agents (robots) but earn higher profits in the most crash-intensive periods. Inexperienced human traders tend to...

Little research has been done to examine discrimination against gays and lesbians in the labor market. Badgett (1995) conducted the only previous study investigating labor market outcomes of gays and lesbians using a random data set. However, due to the structure of the data, the wage...

Prior laboratory experiments have studied general equilibrium economies constructed from “induced preferences” for artificial goods. We introduce new methods that allow us to study economies constructed instead from subjects' actual, “homegrown" preferences. Our subjects reveal their...

than men. From an employer's perspective, in their fertile age they are also at 'risk' of pregnancy. Both factors potentially affect hiring practices of firms. We conduct a largescale correspondence test in Germany, Switzerland, and Austria, sending out approx. 9,000 job applications, varying...

Many experimental studies report that economics students tend to act more selfishly than students of other disciplines, a finding that received widespread public and professional attention. Two main explanations that the existing literature offers for the differences found in the behavior...

In this paper we present the results of an experiment aimed at testing the ability of consumers to coordinate actions in a market in which network externalities are present. Such markets are characterized by the necessity for consumers to believe that a certain minimum number of people will buy...