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The ultimatum game and expected utility maximization: In view of attachment theory
Almakias, Shaul; Weiss, Avi - 2009
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...
Persistent link: https://www.econbiz.de/10010336040
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Humans, robots and market crashes: A laboratory study
Feldman, Todd; Friedman, Daniel - 2008
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...
Persistent link: https://www.econbiz.de/10010288144
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Mergers under asymmetric information - is there a lemons problem?
Borek, Thomas; Bühler, Stefan; Schmutzler, Armin - 2004
We analyze a Bayesian merger game under two-sided asymmetric information about firm types. We show that the standard prediction of the lemons market model-if any, only low-type firms are traded-is likely to be misleading: Merger returns, i.e. the difference between pre- and post-merger profits,...
Persistent link: https://www.econbiz.de/10010315535
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Aggregation and convergence in experimental general equilibrium economies constructed from naturally occurring preferences
Crockett, Sean; Friedman, Daniel; Oprea, Ryan - 2017
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...
Persistent link: https://www.econbiz.de/10012013804
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Large effects of small cues: Priming selfish economic decisions
Snir, Avichai; Levy, Dudi; Wang, Dian; Chen, Haipeng; … - 2024
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...
Persistent link: https://www.econbiz.de/10014577216
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Coordination and Critical Mass in a Network Market - An Experimental Evaluation
Etziony, Amir; Weiss, Avi - 2002
In this paper we present the results of an experiment aimed at testing the ability of consumers to coordinate actions … our experiment, subjects were asked offered the option of buying a good at a certain price. Subjects were told the value … of the product, but this value depended on how many other subjects bought. The experiment was run under two treatments …
Persistent link: https://www.econbiz.de/10013204718
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Cooperation under the shadow of the future: Experimental evidence from infinitely repeated games
Dal Bó, Pedro - 2002
While there is an extensive literature on the theory of in finitely repeated games, empirical evidence on how “the shadow of the future” affects behavior is scarce and inconclusive. We simulate in finitely repeated prisoner’s dilemma games in the lab by having a random continuation rule....
Persistent link: https://www.econbiz.de/10010318999
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A Model of Secular Migration from Centralized to Decentralized Trade
Cai, Zhifeng; Dong, Feng - 2020
A large number of financial assets are traded in both exchanges and over-the-counter markets (i.e., centralized and decentralized markets, CM and DM hereafter, respectively). Moreover, as documented by Biais and Green (2019), the 20th century has witnessed a secular migration of asset trade from...
Persistent link: https://www.econbiz.de/10012663138
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Equilibria in Second Price Auctions with Private Participation Costs
Cao, Xiaoyong; Tan, Guofu; Tian, Guoqiang; Yilankaya, Okan - 2014
We study equilibria in second price auctions when bidders are independently and privately informed about both their values and participation costs and their joint distributions across bidders are not necessarily identical. We show that there always exists an equilibrium in this general setting...
Persistent link: https://www.econbiz.de/10010500279
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Fairness in winner-take-all markets
Bartling, Björn; Cappelen, Alexander W.; Ekström, Mathias - 2018
The paper reports the first experimental study on people's fairness views on extreme income inequalities arising from winner-take-all reward structures. We find that the majority of participants consider extreme income inequality generated in winner-take-all situations as fair, independent of...
Persistent link: https://www.econbiz.de/10011969198