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We consider bargaining in a bipartite network of buyers and sellers, who can only trade with the limited number of … authorities. We perform an experimental test of a graph-theoretic model that allows us to decompose any two-sided network into …
Persistent link: https://www.econbiz.de/10014142824
Economists have developed various methods to elicit risk preferences, which can help forecast decision-making in risky scenarios. However, risk elicitation can be complex, and there remain unresolved challenges. Our research demonstrates that repeated exposure to risk elicitation tasks, such as...
Persistent link: https://www.econbiz.de/10014350808
This paper presents the first laboratory study of risk-sharing without commitment. Our experiment captures the main … for the shape of the constrained optimal risk-sharing arrangement. In our experiment, participants are matched in pairs …-horizon and discounting in the model. Second, at the end of the experiment, a unique period is randomly drawn to count for cash …
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-perfect equilibrium transform these prisoner's dilemma games into coordination games, with both mutual cooperation and mutual defection as …
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uncertainty in the framework of a 2x2 coordination game, in which one choice leads to the same payoff regardless of the action of … the other person's play. Cheap talk is found to be effective, as there is much more coordination in both Signal treatments … coordination when messages are permitted. However, in the No Signal treatments, the round-to-round changes in choices induced by …
Persistent link: https://www.econbiz.de/10014122582
network structure and we examine equilibrium selection. Specifically, actions are either strategic substitutes or strategic … complements, and participants have either complete or incomplete information about the structure of a random network. Since … for reduced exposure to loss, and 2) uncertainty about the network structure makes it considerably more difficult to …
Persistent link: https://www.econbiz.de/10010344833
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