In the Yes/No game, like in the ultimatum game, proposer and respondercan share a monetary reward. In both games the proposer suggests a rewarddistribution which the responder can accept or reject (yielding 0-payoffs). Thegames only differ in that the responder does (not) learn the suggested...

This paper analyses individual information acquisition in an ultimatum game with aprioriunknown outside options. We find that while individual play seems to accord reasonablywell with the distribution of empirical behavior, contestants seem to grossly overweighthe value of information. While...

In this note we establish that rational demand expectations willtypically not evolve in an evolutionary model. In an evolutionarymodel beliefs act like a commitment device to more aggressive be-havior. This commitment effect has the same direction for strategicsubstitutes and complements and...

The Shapley value of a cooperative transferable utility game distributes the dividendof each coalition in the game equally among its members. Given exogenous weightsfor all players, the corresponding weighted Shapley value distributes the dividendsproportionally to their weights. In this...

This questionnaire survey of fund managers in the United States, Germany and Switzerlanddocuments a distinctly positive influence of bonus payments on investment behavior on bothsides of the Atlantic. Higher bonus payments are significantly related to higher working effortbut not to risk taking....

This paper analyzes the behaviour and motivation of fund managers in foreign exchangemarkets reflected in questionnaire evidence. We find that fund managers andFX dealers differ significantly. Fund managers rely more on fundamentals, basicallydue to their longer forecasting horizons, and reject...

A firm with stochastic demand can rely on hired hands when demand is low and rent additional labour when demand is higher. For high demand this implies the co-employment of hired hands, paid directly by the firm, and of rented hands who are paid by a rental agency. This may cause severe problems...

There is robust field data showing that a frequent and successful way of looking fora job is via the intermediation of friends and relatives. Here we want to explore thisexperimentally. Participants first play a simple public good game with two interactionpartners friends, and share whatever...

We experimentally explore individual and interactive decision making ina sequential search task and test whether generally accepted principles ofbounded rationality (aspiration formation, satisficing, and aspiration adjustment)adequately explain the observed search behavior. Subjects can, at...

We study two person-betting games with inconsistent commonly know beliefs, using an experimentalapproach. In our experimental games, participants bet against one another, each bettorchoosing one of two possible outcomes, and payoff odds are know at the time bets are placed.Bettors’ beliefs are...