In the experimental scenario several agents repeatedly invest in n (n _ 2)state-specic assets. The evolutionarily stable and equilibrium (Blume andEasley, 1992) portfolio for this situation requires to distribute funds accordingto the constant probabilities of the various states. The dierent...

During the last three decades the ascent of behavioral economics clearly helped tobring down artificial disciplinary boundaries between psychology and economics.Noting that behavioral economics seems still under the spell of the rational choicetradition – and, indirectly, of behaviorism – we...

Economic theory has evolved without paying proper attention to behavioral approaches,especially to social, economic, and cognitive psychology. This has recently changed byincluding behavioral economics courses in many doctoral study programs. Although thisnew development is most welcome, the...

Does geographic distance or the perceived social distance between subjects significantlyaffect proposer and responder behavior in ultimatum bargaining? To answer this question,subjects play a one-shot ultimatum game with three players (proposer, responder, and apassive dummy player) and...

The common prior assumption justifies private beliefs as posterior probabilities when updatinga common prior based on individual information. Common priors are pervasive in most economicmodels of incomplete information and oligopoly models with asymmetrically informed firms. Wedispose of the...

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...

Das Anspruchserfüllungskonzept mit seinen Bausteinen "Anspruchsbildung, Anspruchserfüllung und Anspruchsanpassung" ist die zentrale Idee in der Theorie des eingeschränkten rationalen Entscheidens. Ähnlich wie die Rationalwahltheorie, die ohne kühne Einschränkungen, zum Beispiel der...

We experimentally investigate whether the satisficing approach isabsorbable, i.e., whether it still applies after participants become awareof it. In a setting where an investor decides between a riskless bondand either one or two risky assets, we familiarize participants with thesatisficing...

The paper explores the applicability of the satisficing approach. Inparticular, we investigate whether basic principles of aspiration formationand satisficing behavior are transferable between similar situations.Individuals are sequentially confronted with two risky investmenttasks, a simple and...

Social institutions regulating group conduct have been regarded as necessaryfor human cooperation to transcend family bonds. However, manystudies in economics and biology indicate that reciprocity based on repeatedinteraction suffices to establish cooperation with non-kin. We shedlight on the...