We report the results of an experiment in which subjects play games repeatedly against changing opponents. In one treatment, "senders" send messages to "receivers" indicating intended actions in that round, and receivers observe senders' previous-round actions (when matched with another...

Using a competitive search (price-posting) model, Lester (2011) shows that improving buyers’ price information can counter-intuitively lead to higher prices. We test this result using a lab experiment. Moving from 0 to 1uninformed buyers leads to higher prices in both 2(seller)x2(buyer) and...

We investigate the effect of positional goods (goods for which one's consumption relative to others’ matters) on saving, based on results from a life-cycle consumption/saving experiment. In a Group treatment, we allow inter-personal comparisons by assigning subjects to groups and displaying...

We examine the effect of the matching mechanism on learning in 2 × 2 games. Six games are played repeatedly under either fixed pairs or random matching. Unlike most economics experiments, the games are played under limited information: subjects are never shown the games' payoff matrices nor...

Numerous studies have looked at the factors that influence the likelihood of successful coordination. Two of the most important factors are the size of the group and whether communication is possible. To our knowledge, there has been no systematic study of the interaction between group size and...

A recurring puzzle in bargaining experiments is that individuals under–respond to changes in their bargaining position, compared to the predictions of standard bargaining theories. Nearly all of these results have come from settings with bargaining power allocated exogenously, so that...

We use a human–subjects experiment to investigate how bargaining outcomes are affected by changes in the bargainers’ disagreement payoffs. Subjects play one of two bargaining games – a standard simultaneous–move Nash demand game, or a related unstructured bargaining game – against...

A well–known implication of microeconomic theory is that sunk costs should have no effect on decision making. We test this hypothesis with a human–subjects experiment. Students recruited from graduate business courses, with an average of over six years of work experience, played the role of...

In a recent paper in Journal of Economic Behavior and Organization, Croson (2000) shows that when subjects' beliefs about the contributions of others are elicited in a voluntary contributions public goods game, those subjects contribute less than do other subjects in the same game when beliefs...