We study the effect of blind punishment in a team production experiment, in which subjects choose non-observable effort levels. In this setting, a random exclusion mechanism is introduced, linked to the normalized group performance (R, from 0 to 1). Every round, each subject is non-excluded from...

Using the experimental sessions of Goeree and Holt (2005), we show that step thinking fits the long-run outcome of minimum-effort and median-effort games surprisingly well for all values of the cost parameter. In the latter, the predicted discontinuous behaviour of step thinking accommodates the...

In this paper we focus on inefficient product quality arising from a free-riding problem in agricultural cooperatives. Individual incentives are not aligned with group gains in cooperatives because individual members bear the costs of offering higher qualities, whereas the benefits from these...