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We present a simple two-steps procedure for a within-subject test of the inequity aversion model of Fehr and Schmidt (1999). In the first step, subjects played modified ultimatum and dictator games and were classified according to their preferences. In the second step, subjects with specific...
Persistent link: https://www.econbiz.de/10014050068
Changes to the degree of a tax system’s progressiveness are a key element of many introduced or considered tax reforms. Especially, flat tax reforms have received increasing attention resulting from their popularity among Eastern European countries. Proponents claim that their simplicity and...
Persistent link: https://www.econbiz.de/10014196144
Traditional economic theory assumes individuals to be entirely rational actors who are solely maximizing their own utility. However, various experimental studies show that individuals do not necessarily conform to the behavioral assumption of Homo economicus. Many subjects do not solely focus on...
Persistent link: https://www.econbiz.de/10014198379
To adequately design and implement effective environmental policies, it is paramount for policymakers to understand preferences for regulatory instruments as well as their individual level determinants. In this study, I experimentally investigate the demand for three environmental policies,...
Persistent link: https://www.econbiz.de/10014080085
When consuming goods provided by public utilities, such as telecommunication, water, gas or electricity, the predominant payment scheme is pay-later billing. This paper identifies one potential consequence of pay-later schemes, present-biased overconsumption of the respective good, and tests...
Persistent link: https://www.econbiz.de/10013250266
We analyze both theoretically and empirically how monetary incentives and information about others’ behavior affect dishonesty. We run a laboratory experiment with 560 participants, each of whom observes a number from one to six with there being a payoff associated with each number. They can...
Persistent link: https://www.econbiz.de/10013239586
Theories of fairness preferences have gained remarkable attention throughout much of recent economic literature. Formal models have been proposed which are able to explain behaviour that is yet unexplained by the classical model of the strictly egocentric economic man ("homo oeconomicus"). These...
Persistent link: https://www.econbiz.de/10013147752
We investigate the dynamic effects of a charitable lottery and an income tax on donations. The analysis is based on a two-round dictator game with the subject's charity of choice as recipient and additional incentives in the first round only. The immediate effect of a charitable lottery leads to...
Persistent link: https://www.econbiz.de/10013048150
Using a lab experiment, we investigate the real-life performance of envy-free and proportional cake-cutting procedures with respect to fairness and preference manipulation. We find that envy-free procedures, in particular Selfridge-Conway, are fairer and also are perceived as fairer than their...
Persistent link: https://www.econbiz.de/10012895799
In auctions bidders are usually assumed to have rational expectations with regards to their winning probability. However, experimental and empirical evidence suggests that agent's expectations depend on direct utility stemming from expectations, resulting in optimism or pessimism. Optimism...
Persistent link: https://www.econbiz.de/10014240557