This paper examines the determinants of informal sanctions by a large number of experiments.

In this paper we study experimentally four remedies to overcome inefficienciesthat arise from the incompleteness of contracts...

This paper shows that neglecting fairness concerns and decision errors prevents a satisfactory understanding of how competition affects prices.

A substantial number of people exhibit social preferences, which means they are not solelymotivated by material self-interest but also care positively or negatively for the material payoffs ofrelevant reference agents...

The paper investigates the effect of interest rate policy on price bubbles, trading behavior, and portfolio choice in experimental stock markets. In a series of experiments, participants trade an asset over 15 periods. Alternatively, the participants can invest money in interest-bearing bonds....

This paper investigates the effect of interest rate policy on stock marketbubbles and trading behavior in experimental asset markets. For this purpose, weintroduce the possibility of investing in interest bearing bonds to the classicallaboratory asset market design of Smith, Suchanek, and...

We investigate the role of affect and deliberation on social preferences. In ourlaboratory experiment subjects decide on a series of mini Dictator games while they are undervarying degrees of cognitive load. The cognitive load is intended to decrease deliberation andtherefore enhance the...

Machiavelli advises against delegating the distribution of favors. We test this claim in anexperiment, in which an investor can directly transfer money to a trustee or delegate thisdecision to another investor. Varying the value of the transfers of the investor and thedelegate, we find that the...

An apology is a strong and cheap device to restore social or economic relationships thathave been disturbed. In a laboratory experiment we find that harmdoers use apologies inparticular if they fear punishment and when their intentions cannot be easily inferred. Afteroffenses with ambiguous...

This paper underlines that reciprocity has powerful implications for many economic fields. [editors EconBiz].