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We conduct a laboratory experiment to analyze the effect transactions costs and inertia have on charitable giving. We conjecture that transaction costs will have a greater effect on donations if the solicitation is received when the opportunity cost of time is high. Inertia could become a factor...
Persistent link: https://www.econbiz.de/10011150282
We develop, and experimentally test, models of informal agreements. Agents are assumed to be honest but suffer costs of overcoming temptations. We extend two classical bargaining solutions -- split-the-difference and deal-me-out -- to this informal agreement setting. For each solution there are...
Persistent link: https://www.econbiz.de/10011199691
Charness and Dufwenberg (2006) find that promises increase cooperation and suggest that the behavior of subjects in …
Persistent link: https://www.econbiz.de/10008914311
Should one use words or money to foster trust of the other party if no means of enforcing trustworthiness are available? This paper reports an experiment studying the effectiveness of two types of mechanisms for promoting trust: a costly gift and a costless message as well as their mutual...
Persistent link: https://www.econbiz.de/10008914312
Previous research has suggested that communication and especially promises increase cooperation in laboratory experiments. This has been taken as evidence for internal motivations such as guilt aversion or preference for promise keeping. The original goal of this paper was to examine promises...
Persistent link: https://www.econbiz.de/10009371391
hold-up problem. As a team symbol we employ color t-shirts. We find that the usage of t-shirts itself does not create a …
Persistent link: https://www.econbiz.de/10009371392
We develop and test experimentally the argument that gender/family and/or professional identities, activated through priming, influence preference for competition. We focus on female professionals for whom these identities may conflict and male professionals for whom they may be reinforcing. We...
Persistent link: https://www.econbiz.de/10011048214
The hold-up problem has played a central role in the study of firm boundaries, which is a fundamental element of the economic study of organizations. We study a previously unexplored mechanism by which integration between two parties could mitigate the problem. Based on the social identity...
Persistent link: https://www.econbiz.de/10011048644
Should one use words or money to foster trust of the other party if no means of enforcing trustworthiness are available? This paper reports an experiment studying the effectiveness of two types of mechanisms for promoting trust: a costly gift and a costless message as well as their mutual...
Persistent link: https://www.econbiz.de/10011051376
between other-regarding behavior and opportunism. In our experiment the seller can become worse off by investing, suggesting … that costly solutions to opportunistic behavior such as vertical integration may be unnecessary. …
Persistent link: https://www.econbiz.de/10011120419