Political stock markets (PSM) are sometimes seen as substitutes for opinion polls. On the bases of a behavioural model, specific preconditions were drawn out under which manipulation in PSM can weaken this argument. Evidence for manipulation is reported from the data of two separate PSM during...

In November 2001, 5,558 readers of the German weekly Die Zeit participated in a three-person ultimatum experiment involving a proposer X, a responder Y, and a dummy Z (Guth and van Damme, 1998). A proposal is a vector (x,y,z) with x + y + z = DM 1,200, and x in {0, 200, 400, 600, 800, 1000}, and...

It is commonly accepted that face-to-face communication induces cooperation. The experiment disentangles communication and social effect (replication of Roth, 1995) and examines the components of the social effect with the help of unilateral communication. Results suggest that separate...

In this chapter, we present our empirical investigation of the forecasting accuracy of a prediction market experiment drawn on the outcome of the World Cup 2002. We analyse the predictive accuracy of 64 markets and compare to bookmakers’ quotes and chance as benchmarks. We revisit the...

This paper attacks the widespread view that the latest (corporate) income tax reform in Germany was urgently needed to reduce the tax burden on the German economy. In the run-up to this tax reform, the public debate focused on nominal income tax rates and hence neglected the determination of the...

On 11 May 2001, readers of the Berliner Zeitung were invited to participate in an ultimatum bargaining experiment played in the strategy vector mode: each participant chooses not only how much (s)he demands of the DM1,000 pie but also which of the nine possible offers of DM100, 200, …, 900...

The experiment disentangles communication and social effect in face-to-face communication. The results question the previous interpretation of communication effects in ultimatum bargaining, and suggest that separate processes, both of a strategic and of an affective-social nature induce...

5,132 readers of the German weekly, "Die Zeit", participated in a three-person bargaining experiment. In our data analysis we focus on (1) the influence of age, gender, profession and medium chosen for participation and (2) the external validity of student behaviour (inside and outside the lab)....

Many decisions in politics and business are made by teams rather than by single individuals. In contrast, economic models typically assume an individual rational decision maker. A rapidly growing body of (experimental) literature investigates team decisions in different settings. We study team...