Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each...

Field evidence suggests that people belonging to the same group often behave similarly, i.e., behavior exhibits social interaction effects. We conduct a laboratory experiment that avoids the identification problem present in the field and allows us to study the behavioral logic of social...

Field evidence suggests that people belonging to the same group often behave similarly, i.e., behaviour exhibits social interaction effects. We conduct an experiment that avoids the identification problem present in the field. Our novel design feature is that each subject simultaneously is a...

Field evidence suggests that people belonging to the same group often behave similarly, i.e.,behaviour exhibits social interaction effects. We conduct an experiment that avoids theidentification problem present in the field. Our novel design feature is that each subjectsimultaneously is a member...

Sanctions are often so weak that a money maximizing individual would not be deterred. In this paper I show that they may nonetheless serve a forward looking purpose if sufficiently many individuals are averse against advantageous inequity. Using the Fehr/Schmidt model (QJE 1999) I define three...

Sanctions are often so weak that a money maximizing individual would not be deterred. In this paper I show that they may nonetheless serve a forward looking purpose if sufficiently many individuals are averse against advantageous inequity. Using the Fehr/Schmidt model (QJE 1999) I define three...

We introduce the moonlighting game. Player A can take money from or pass money to player B, who can either return money or punish player A. Thus, our game allows to study both positively and negatively reciprocal behaviour. One-shot experiments were conducted with and without the possibility of...

Why do rulers play by the rules? We show that the legality requirement under the rule of law implements an endogenous enforcement mechanism supporting constitutionality. Agents which do not obey unconstitutional legal norms are not sanctioned under constitutional rule. A principal who defects...

In order to analyze the severity of sentencing, and to show how the probabilistic interpretation of strategic behavior can be tricky, this paper uses the crime strategic model (inspection game) proposed by Tsebelis. This model shows that any attempts to increase the severity of punishment will...

The OECD’s Pillar One Blueprint proposes a new taxing right, Amount A, that would shift the pre-tax profits of multinational enterprises (MNEs) from Residence and Source jurisdictions to Market jurisdictions. The Amount A formula provides multiple opportunities for both MNEs and tax...