Showing 1 - 9 of 9
We study an all-pay contest with multiple identical prizes (lifeboat seats). Prizes are partitioned into subsets of prizes (lifeboats). Players play a two-stage game. First, each player chooses an element of the partition (a lifeboat). Then each player competes for a prize in the subset chosen...
Persistent link: https://www.econbiz.de/10010271439
This article investigates the impact of societal structure on behavior in competitions that can be modeled as all-pay auctions with identity-dependent externalities. The consideration of identity-dependent externalities, which naturally arise in the most common applications of all-pay auctions,...
Persistent link: https://www.econbiz.de/10010270252
We study the role of an imbalance in fighting strengths when players bargain in the shadow of conflict. Our experimental results suggest: In a simple bargaining game with an exogenous mediation proposal, the likelihood of conflict is independent of the balance of power. If bargaining involves...
Persistent link: https://www.econbiz.de/10011301433
Learning that others earn more may reduce individual well-being but can also be informative about the own income prospects. This paper provides experimental evidence that separates direct effects of income comparisons on well-being and informational effects from observing changes in the income...
Persistent link: https://www.econbiz.de/10011301613
What is the strategic role of membership in an intergovernmental group with unanimity requirements if the group negotiates with an external player in a setting with incomplete information? Being in such a group has a strategic effect compared to negotiating as a standalone player and reduces the...
Persistent link: https://www.econbiz.de/10010329480
We analyze the incidence and welfare effects of unit sales taxes in experimental monopoly and Bertrand markets. We find, in line with economic theory, that firms with no market power are able to shift a high share of a tax burden on to consumers, independent of whether buyers are automated or...
Persistent link: https://www.econbiz.de/10010271438
This paper proposes a screening approach to explain why dating is associated with purchasing status products and conspicuous gift giving. A potential bride searching for a husband may seek to screen candidates whose income is only partially observable. Taking into account that she also bears...
Persistent link: https://www.econbiz.de/10010396864
We study deception choices and deception detection in a tax compliance experiment. We find large systematic differences in individual deception abilities. Tax payers are conscious about their own deception abilities. The empirical outcomes are in line with a theory suggesting that tax payers...
Persistent link: https://www.econbiz.de/10010396989
The generic alliance game considers players in an alliance who fight against an external enemy. After victory, the alliance may break up, and its members fight against each other about the spoils of the victory. Our experimental analysis of this game shows: In-group solidarity vanishes after the...
Persistent link: https://www.econbiz.de/10010310104