In this paper a network model is developed in which three players sequentially choose their strategies. In the first stage, a profit-maximizing network firm chooses the price and thus the size of the network. In the second stage the consumers decide whether to join in the network or not. In the...

This paper reports on an experiment studying the effectiveness of two types of mechanisms for promoting trust: pecuniary and non-pecuniary as well as their mutual interaction. Our data provide evidence that both mechanisms significantly enhance trust in comparison to the standard investment...

This paper explores how information about paired subject's previous action affects one's own behavior in a dictator game. The first experiment puts dictators in two environments where they can either give money to the paired player or take money away from them: one where the recipient is a...

This paper reports an experiment evaluating the effect of gift giving on building trust in a relationship. We have nested our explorations in the standard version of the investment game. Our gift treatment includes a dictator stage in which the trustee decides whether to give a gift to the...

This paper experimentally investigates whether risk-averse individuals punish less if the outcome of punishment is uncertain than when it is certain. Our design includes three treatments: Baseline in which the one-shot prisoner’s dilemma game is played; Certain Punishment in which the...

I prove that, in assignment markets with more than two sides, agents of different sides (or sectors) need not be complements, whereas agents of the same side need not be substitutes. Shapley (1962) showed that this cannot happen when assignment markets are bilateral. Nevertheless, I found...

Previous research has suggested that communication and especially promises increase cooperation in laboratory experiments. This has been taken as evidence for internal motivations such as guilt aversion or preference for promise keeping. The original goal of this paper was to examine promises...

We introduce the class of multi-sided B ohm-Bawerk assignment games, which generalizes the well-kown two-sided B ohm-Bawerk assignment games to situations with an arbitrary number of sectors. We reach the extreme core allocations of any multi-sided B ohm- Bawerk assignment game by means of an...

The purpose of this study is to elucidate under which circumstances, how, and to what extent market power on the TGC market can be used to affect the entire electricity market. There are basically two reasons for being concerned with market power in TGC markets. One is that a small number of...

Abstract. This paper considers a fairly large class of noncooperative games in which strategies are jointly constrained. When what is called the Ky Fan or Nikaidô-Isoda function is convex-concave, selected Nash equilibria correspond to diagonal saddle points of that function. This feature is...