This paper investigates in a principal–agent environment whether and how group membership influences the effectiveness of incentives and when incentives can have “hidden costs”, i.e., a detrimental effect. We show experimentally that in all interactions control mechanisms can have hidden...

Andreoni (1993) has shown in an experimental study that crowding out is incomplete when an involuntary lump-sum tax is levied exogenously on individuals to finance the provision of a public good. In this paper, we (i) replicate Andreoni's experimental conditions, and (ii) introduce treatments...

This talk will describe a stream of research in experimental economics focusing on the illumination and demonstration of other-regarding preferences (ORPs). Evidence will come primarily from public goods experiments, but also bargaining games (ultimatum, dictator, trust, ...