Our research is a variant of the third party punishment game. In particular, we want to test whether players have heterogeneous preferences; the levels of the sanction and of the transfer are proportional to the unfairness of the Dictator; the change of the role influences the Observer's...

For decades, experimental economics has been very interested in behavior that could be characterized as practicing solidarity (although the term is rarely used). Solidarity is a key concept in Catholic Social Teaching. This paper builds a bridge between these two endeavors that, thus far, had...

For decades, experimental economics has been very interested in behavior that could be characterized as practicing solidarity (although the term is rarely used). Solidarity is a key concept in Catholic Social Teaching. This paper builds a bridge between these two endeavors that, thus far, had...

For decades, experimental economics has been very interested in behavior that could be characterized as practicing solidarity (although the term is rarely used). Solidarity is a key concept in Catholic Social Teaching. This paper builds a bridge between these two endeavors that, thus far, had...

In contrast to guilt based reciprocity, which hypothesizes that reciprocity is an increasing function of the 2nd order expectation of the trustors’ 1st order expectations for reciprocation, we tested for reciprocity that is a decreasing function of the trustees’ 2nd order expectations, i.e.,...

This chapter reviews the theory of the voluntary public and private redistribution of wealth elaborated by economic analysis in the last forty years or so. The central object of the theory is altruistic gift-giving, construed as benevolent voluntary redistribution of income or wealth. The theory...

We test whether promises per se are effective in enhancing cooperative behavior in a form of a trust game. In Charness & Dufwenberg (2006) we found considerable effectiveness for free-form personalized pre-play statements-of-intent ("promises"), in support of a theory of belief-dependent guilt...

We examine experimentally the impact of communication on trust and cooperation. Our design admits observation of promises, lies, and beliefs. The evidence is consistent with people striving to live up to others' expectations in order to avoid guilt, as can be modeled using psychological game...

The aim of this paper is to improve on the model by Fehr and Schmidt (1999) by developing a non-linear model (that leads to interior rather than corner solutions) and by taking into account that different levels of income imply different reactions of fair-minded people. We suggest to modify the...

We examine, experimentally and theoretically, how communication within a partnership may mitigate the problem (highlighted in contract theory) of hidden action. What is the form and content of the communication? Which model of decision-making can capture the impact of communication? We consider...