In many cultures and industries gifts are given in order to influence the recipient, often at the expense of a third party. Examples include business gifts of firms and lobbyists. In a series of experiments, we show that, even without incentive or informational effects, small gifts strongly...

In many cultures and industries gifts are given in order to influence the recipient, often at the expense of a third party. Examples include business gifts of firms and lobbyists. In a series of experiments, we show that, even without incentive or in-formational effects, small gifts strongly...

"Traditional explanations for the popularity of auctions are efficiency and revenue maximization. We argue that auctions also induce 'overbidding,' i.e., bidding above the buyer's willingness to pay for an item outside the auction. Even if only few buyers overbid, they affect prices and...