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The Hayek hypothesis and long run competitive equilibrium: an experimental investigation

Shachat, Jason; Zhang, Zhenxuan - Wang Yanan Institute for Studies in Economics (WISE), … - 2012

We report on an experiment investigating whether the Hayek Hypothesis (Smith, 1982) extends to the long run setting. We consider two environments; one with a common production technology having a U-shaped long run average cost curve and a single competitive equilibrium, and another with a common...

Persistent link: https://www.econbiz.de/10010904018

Rebels without a clue? Experimental evidence on partial cartels

Clemens, Georg; Rau, Holger A. - Düsseldorf Institute for Competition Economics (DICE), … - 2013

This paper provides experimental evidence on the formation of partial cartels with endogenous coordination. Firms face a coordination challenge when a partial cartel is to be formed as every firm is better off if it is not inside the cartel but is a free-riding outsider. We introduce a...

Persistent link: https://www.econbiz.de/10010956751

Promises in contract design

Charness, Gary; Du, Ninghua; Yang, Chun-Lei; Yao, Lan - In: European Economic Review 64 (2013) C, pp. 194-208

In this paper, we propose a new channel of contract design to boost efficiency. If deviating from one's own words induces a self-imposed moral burden, the optimal contracting procedure with regard to cheap talk shall assign the responsibility for installing the nonbinding promise in the contract...

Persistent link: https://www.econbiz.de/10010729803

The royal lie

Hoffmann, Mareike; Lauer, Thomas; Rockenbach, Bettina - In: Journal of Economic Behavior & Organization 93 (2013) C, pp. 305-313

According to the Greek philosopher Plato “[…] if anyone at all is to have the privilege of lying the rulers of the State […] may be allowed to lie for the public good” (The Royal Lie). To investigate whether The Royal Lie may foster cooperation in public goods provision we experimentally...

Persistent link: https://www.econbiz.de/10011048117

Voluntary formation of centralized sanctioning institutions

Sääksvuori, Lauri - In: Journal of Behavioral and Experimental Economics … 44 (2013) C, pp. 150-159

This paper examines the voluntary formation of centralized sanctioning institutions. We introduce a simple model to study institution formation as a second-order cooperation problem where voluntary contributions to a common fund serve as an instrument to finance centralized sanctioning...

Persistent link: https://www.econbiz.de/10011051748

The Hayek Hypothesis and Long Run Competitive Equilibrium: An Experimental Investigation

Shachat, Jason; Zhang, Zhenxuan - 2013

We report on an experiment investigating whether the Hayak Hypothesis (Smith, 1982)extends to the long run setting. We consider two environments; one with a common pro-duction technology having a U-shaped long run average cost curve and a single competitive equilibrium, and another with a common...

Persistent link: https://www.econbiz.de/10010892126

The effect of financial goals and incentives on labor. An experimental test in an online market.

Johnson, David; Weinhardt, Justin - Department of Economics, University of Calgary - 2014

incentives. This effect is absent in non-western workers. …

Persistent link: https://www.econbiz.de/10010960257

Monetary incentives versus class credit: Evidence from a large classroom trust experiment

Luccasen, R. Andrew; Thomas, M. Kathleen - In: Economics Letters 123 (2014) 2, pp. 232-235

This paper reports an experimental investigation of a trust game using either cash or class credit as incentives to …

Persistent link: https://www.econbiz.de/10010906358

Corporate Social Responsibility in the work place

Koppel, Hannes; Regner, Tobias - In: Experimental Economics 17 (2014) 3, pp. 347-370

We analyze the effect of investments in corporate social responsibility (CSR) on workers’ motivation. In our experiment, a gift exchange game variant, CSR is captured by donating a certain share of a firm’s profit to charity. We are testing for CSR effects by varying the possible share of...

Persistent link: https://www.econbiz.de/10010959282

Can short-term incentives induce long-lasting cooperation? Results from a public-goods experiment

Bruttel, Lisa; Friehe, Tim - In: Journal of Behavioral and Experimental Economics … 53 (2014) C, pp. 120-130

This paper investigates whether providing strong cooperation incentives only at the outset of a group interaction …–10 rapidly deteriorated in rounds 11–20 once these incentives were removed, eventually trending below the level of cooperation in … the control group. This suggests the possibility of temporary incentives backfiring in the long run. This paper ties in …

Persistent link: https://www.econbiz.de/10011220551