This is a study about the possibility of self-governance. We designed two versions of a step-level public good game, with or without a centralized sanctioning mechanism (CSM). In a baseline treatment participants play 14 rounds of the non-CSM game. In an automatic removal (AR) treatment...

Migrations have intensified with the advent of globalisation. Societies once solidly monocultural are becoming increasingly multicultural. It is, however, not clear how social capital would travel across cultural boundaries. A multicultural environment might result on agents preferring to...

This paper explores the effect of the possibility of third-party intervention on behavior in a variant of the Berg, Dickhaut, and McCabe (1995) “Investment Game”. A third-party’s material payoff is not affected by the decisions made by the other participants, but this person may choose to...

In this paper we analyze the relationship between financial decisions, information acquisition, and trust. In particular, our hypothesis is that financial transactions depend, among other variables, on the level of trust, reciprocity and association among individuals. Also, individuals’...