We experimentally investigate social effects in a principal-agent setting with incomplete contracts. The strategic interaction scheme is based on the Investment Game (Berg et al., 1995). In our setting four trustees and one trustor are interacting and the access to choices of peers in the group...

Theoretical and empirical body of research have exposed the powerful role of experiencing regret in guiding choice behavior. In this paper, we examined the impact of experienced regret and rejoicing induced by feedback provided on a risk decision prior to a two-period intertemporal choice. To...

Although it is now recognized that norms play an important role in many economic decisions, compliance with conventions is generally considered to be driven by rational self-interest only. We report instead experimental data showing that (1) ‘external’ norms of fairness sustain social...

The bias generated by the subjective perception of scarcity on the consumer's choice is investigated using two separated experiments. The first experiment is aimed to define the prevailing preferences towards a set of commodities, the second experiment checked the effects produced by the...

In this paper we use a Moore Automata with Binary Stochastic Output Function for exploring the extensive decision on tax evasion made by subjects in experiments run in Chile and Italy. We show first how an hypothesis about subject behavior is converted into an automaton and how do we compute the...

Recent experiments with the Dictator Game (and the ensuing discussions) have been affected by considerable confusion regarding the purpose of this design. A common complaint is that the design gives rise to fragile regularities and therefore is of little use for theory-testing. We take issue...

Deviations from standard game theoretical predictions have been repeatedly observed in basic Dictator Games. Different interpretations have been provided to these deviations. On the one hand, empirical (among others, Forsythe et al., 1994) and theoretical works (among others, Bolton and...