The concept of self-centered fairness, as embodied in ERC preferences, organizes the data from the two-person ultimatum and dictator game, as well as the Gthvan Damme game, the market game, the dictator game with multiple recipients, and the fixed total sacrifice effect as observed in this...

We document an increase in the scoring probability from penalties in soccer, which separates the time period before 1974 significantly from that after 1976: the scoring probability increased by 11%. We explain this finding by arguing that the institution of penalty-shooting before 1974 is best...

Electronic reputation or feedback mechanisms aim to mitigate the moral hazard problems associated with exchange among strangers by providing the type of information available in more traditional close-knit groups, where members are frequently involved in one another's dealings. In this paper, we...

We study a classic mechanism design problem: How to organize trade between two privately informed parties. We characterize an optimal mechanism under selfish preferences and present experimental evidence that, under such a mechanism, a non-negligible fraction of individuals deviates from the...