In the vast majority of laboratory experiments documenting the existence of reciprocity subjects are endowed with windfall funds. In many environments with salient fairness considerations such endowments are known to inflate subjects’ other-regarding behavior, thereby creating a so-called...

In the vast majority of experiments documenting the existence of reciprocity subjects are endowed with windfall funds. In some situations such endowments might create a so-called “house money effect”. We identify two reasons why the source of endowment might matter for negative reciprocity:...

In the vast majority of laboratory experiments documenting the existence of reciprocity subjects are endowed with windfall funds. In many environments with salient fairness considerations such endowments are known to inflate subjects' other-regarding behavior, thereby creating a so-called...

This paper presents a model of real effort provision in conjunction with social preference theory to predict how individuals exert effort to replace an exogenously determined "state of the world" with a preferred social outcome. Binary dictator games and real effort tasks are used to examine...

Using a large-scale incentivized trust game experiment conducted across all 27 EU member states, we find that sexual minorities exhibit greater prosocial behaviour toward another vulnerable group but not toward an unknown counterpart, compared to heterosexual individuals. The observed effects...

Bargaining results emerge from the interplay of strategic options and social preferences. For every bargaining game, however, the advantage of a player having certain preferences in terms of negotiated equilibrium revenues might differ. We explore the hypothesis that preferences change according...

We examine the realism of the assumption of self-interested opportunism in agency theory. We place subjects into manager/producer pairs and set parameters so that the producer extracts the highest share of residual earnings from the manager by setting the budget at zero (100% slack) and...

Decades of experimental research show that some people forgo personal gains to benefit others in unilateral anonymous interactions. To explain these results, behavioral economists typically assume that people have social preferences for minimizing inequality and/or maximizing efficiency (social...

Recent work highlights that cooperation in the one-shot Prisoner's dilemma (PD) is primarily driven by moral preferences for doing the right thing, rather than social preferences for equity or efficiency. By contrast, little is known on what motivates cooperation in the Stag-Hunt Game (SHG)....

To explain why pre-play communication increases cooperation in games,one refers to a) strategic causes such as efficient communication or reputationeffects, and b) changes in the utilities due to social processes. Hithertoexperimental support for both explanations is mixed and confounded....