Bilateral joint ventures, such as marriage, are economically inspired by their prospects of labor division and specialization. However, specialization makes the partnerwho investsmore in relation-specificqualificationsmore exploitable (holdup problem). In a two-person experiment we study...

We study behavior in experimental beauty contests with, first, boundary and interior equilibria, and, second, homogeneous and heterogenous types of players. We find quicker and better convergence to the game-theoretic equilibrium with interior equilibria and homogeneous players.

On May 11, 2001, readers of the Berliner Zeitung were invited to participate in an ultimatum bargaining experiment played in the strategy vector-mode: Each participant chooses not only how much (s)he demands of the DM 1.000-pie but also which of the nine possible offers of DM 100, 200, ..., 900...

We examine the effects of leading by example in voluntary contributionexperiments. Leadership is implemented by letting one group membercontribute to the public good before followers do. Such leadershipincreases contributions in comparison to the standard voluntary contributionmechanism,...

In a large scale newspaper experiment 5,132 readers of the German weekly, Die Zeit, participated in a three-person bargaining game. In our data analysis we focus on (1) the influence of age, gender, profession and the medium chosen for participation on bargaining behavior and on (2) the external...

Leadership is important for the well-functioning of organizations. Weexamine the effects of leadership on contributions in public goods experiments.Leadership by example is implemented by letting one groupmember contribute to the public good before followers do. Such leadershipincreases...

In an overlapping generations-experiment with multiple families participants caneither support their parents directly and thereby reduce their tax burden or hopefor tax-financed old age support. State productivity is captured by the factor withwhich total tax revenues are multiplied to determine...

In a large scale newspaper experiment 5,132 readers of the German weekly, Die Zeit, participated in a three-person bargaining game. In our data analysis we focus on (1) the influence of age, gender, profession and the medium chosen for participation on bargaining behavior and on (2) the external...