Contracts may be subject to strategic default, particularly if public enforcement institutions are weak. In a lab experiment, we study behavior in a contract farming game without third-party enforcement but with an external spot market as outside option. Two players, farmer and company, may...

Contract flexibility can be expedient for economic exchange in environments with high ambiguity and risk, but may also encourage opportunistic behavior. We run a modified investment game, including the choice between two different contract designs and asymmetric information about the realized...

We present an experiment on voluntary contributions to a public good. The game has a dominant strategy solution in the interior of the strategy space. In the experiment we observe significant over-contribution. This result is similar to those of the typical corner solution experiments. --...