Does adverse selection hamper the effectiveness of voluntary risk sharing? How do differences in risk profiles affect adverse selection? We experimentally investigate individuals’ willingness to share risks with others. Across treatments we vary how risk profiles differ between individuals. We...

We study a market in which both buyers and sellers can decide to preempt and set theirquantities before market clearing. Will this lead to preemption on both sides of the market,only one side of the market, or to no preemption at all? We …nd that preemption tends to beasymmetric in the sense...

Recent theoretical work shows that folk theorems can be developed for infiniteoverlapping generations games. Cooperation in such games can be sustained as aNash equilibrium. Besides the efficient cooperative equilibrium there is alsothe inefficient non-cooperative equilibrium. This paper...

We examine an experimental gift exchange game in which the players can improve upon theunique no-gifts equilibrium through cooperative gift giving. The main feature of the study is thatthere are two different types of gift exchange, which we call simple and complex exchange,respectively. Complex...