In a laboratory-controlled environment we provide experimental evidence on the effects of transparency (complete over incomplete information) and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent). We implement a simple two-person investment...

In a laboratory-controlled environment we provide experimental evidence on the effects of transparency (complete over incomplete information) and empowerment on trust and trustworthiness. We implement a simple version of the standard two-person investment game in a repeated game context with...

In a laboratory-controlled environment characterized by uncertainty and incomplete information we provide experimental evidence on the effects of transparency and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent) in a simple two-person...

This paper uses a controlled laboratory environment and a two-person investment game in a multi-period setting to examine the impact of empowering investors with the right to veto the investee’s profit distribution on trust and trustworthiness. Two forms of vetoes are tested: the first is...

The objective of this paper is to use the ultimatum game setting in a controlled laboratory environment to provide additional empirical evidence on the puzzling phenomenon of why some economic agents may reject non-trivial offers for distributing the surplus of an economic transaction, while...

Using data from a laboratory-controlled environment we analyze the decisions of principals to veto the allocations of grossed-up investments proposed by their agents in a modified trust game. We also analyze the changes in the surplus associated with the introduction of empowerment and the...

An investment game is used to generate indices of trust and reciprocity from 182 young adults. The raw data indicate that men are more trusting than women and responders return a larger share of their resources to more trusting senders than to less trusting senders. Sex differences do not...

We use the SEC’s 2007 decision that eliminates the reconciliation requirement for foreign listed private issuers (FPIs) reporting under IFRS as a natural experiment to examine whether IFRS and US GAAP produce accounting information of comparable quality. We conduct statistical analyses using a...

Investment in research and development may (with some probability) lead to reductions in a firm’s production cost. If the production-cost savings associated with successful research and development is freely disseminated to other firms as soon as it is realized, too few resources may be...

Our study examines whether combining experimental economics and economics psychology techniques can provide a better understanding of individuals’ tax compliance decisions in the laboratory. We find that considering individuals’ attitudinal, personality and intention measures in addition to...