In an information cascade experiment participants are confronted with artificial predecessors predicting in line with the BHW model (Bikchandani et al., 1992). Using the BDM (Becker et al., 1964) mechanism we study participants' probability perceptions based on maximum prices for participating...

The empirical observation of preference reversals has been viewed as a fundamental challenge to economic theory, though exactly what the implications for economic theory are has not been investigated in depth. We argue in two ways that the implications for economics are not so serious as has...

On the basis of problems related to asymmetric information, self-governance has been proposed and often empirically found to be superior to the external imposition of rules in social dilemma situations. The present paper suggests and experimentally analyses a different line of argument, namely...