We extend Kohlberg and Mertens' (1986) structure theorem on the Nash correspondence to show that its graph is not only homeomorphic to the underlying space of games, but that the homeomorphism extends to the ambient space of games times strategies, thus implying the graph is unknotted. This has...

Does gender play a role in the context of team work? Our results based on a real-effort experiment suggest that performance depends on the composition of the team. We find that female and male performance differ most in mixed teams with revenue sharing between the team members, as men put in...

We analyze the Spence education game in experimental markets. We compare a signaling and a screening variant, and we analyze the effect of increasing the number of employers from two to three. In all treatments, there is a strong tendency to separate. More efficient workers invest more often and...

By identifying types whose low-order beliefs - up to level li - about the state of nature coincide, we obtain quotient type spaces that are typically smaller than the original ones, preserve basic topological properties, and allow standard equilibrium analysis even under bounded reasoning. Our...

To address the impact of regulation on ethical concerns of consumers, we study the example of minimum wages. In our experimental market, consumers have monopsony power, firms set prices and wages, and workers are passive recipients of a wage payment. We find that the majority of consumers...

Predictions under common knowledge of payoffs may differ from those under arbitrarily, but finitely, many orders of mutual knowledge; Rubinstein's (1989)Email game is a seminal example. Weinstein and Yildiz (2007) showed that the discontinuity in the example generalizes: for all types with...

This paper shows a fundamental property of vector fields representing dynamics on spaces of mixed strategies of normal form games whose zeros coincide with the Nash equilibria of the underlying games. The property shown is that the indices of components of zeros of any vector field in this class...

We report on experiments to replicate Plott and Zeiler's (2005) findings that the WTP-WTA gap disappears when using procedures that are aimed at reducing misunderstandings, such as training rounds for the BDM mechanism. Following the design by Plott and Zeiler (2005) and Isoni, Loomes, and...

We consider two ascending auctions and show that many of the (unwanted) collusive or signaling equilibria studied in the literature in the framework of the SEAMO (simultaneous English auction for multiple objects) don't have a counterpart in the JAMO (Japanese auction for multiple objects). We...

Social media are at the center of countless debates on polarization, misinformation, and even the state of democracy in various parts of the world. An essential feature of social media is the ranking algorithm that determines how content is presented to the users. This paper studies the dynamic...