Previous literature proved the existence of an upper bound on the probability of trade in a bilateral trading problem when the valuations are distributed uniformly on [0,1]. This upper bound is achieved in the ½-double auction when the players play the Chatterjee-Samuelson strategies. We...

Existing experimental research on behavior in weakest-link games shows overwhelmingly theinability of people to coordinate on the efficient equilibrium, especially in larger groups. Wehypothesize that people will be able to coordinate on efficient outcomes, provided they havesufficient freedom...

We consider the well-known result of Arrow (1953) that the set of equilibria of an economy with complete markets coincides with the one of an economy with sequentially complete markets. We show by means of two examples that this results is problematic when there exist multiple equilibrium...

The paper addresses the following question: how efficient is the market system in allocating resources if trade takes place at some prices $p$ that are not necessarily competitive? Even though there are many partial answers to this question, an answer that stands comparison to the rigor by which...

This paper experimentally studies the effects of competition in an environment where people’s actions can not be contractually fixed. We find that, in comparison with no competition, the presence of competition does neither increase efficiency nor does it yield any gains in earning for the...

Under a k-approval scoring rule each agent attaches a score of one to his k most preferred alternatives and zero to the other alternatives. The rule assigns the set of alternatives with maximal score. Agents may extend preferences to sets in several ways: they may compare the worst alternatives,...

This paper shows that the gender world record ratio in four disciplines, i.e. marathon, triple jump, pole vault and 800 meters, follows a S-shape over time. It is argued that this pattern is initiated by a sudden drop in the social barrier for women to participate in these disciplines. This drop...

Centralized sanctioning institutions are of utmost importance for overcoming free-riding tendencies and enforcing outcomes that maximize group welfare in social dilemma situations. However, little is known about how such institutions come into existence. In this paper we investigate, both...

We consider a dynamic homogenous oligopoly in which firms set prices repeatedly. Theory predicts that short-run price commitments have an increasing impact on profits and may lead to less price stability. The experiments that we conduct provide support for the first effect and against the second...

In the infinite horizon alternating price setting duopoly of Maskin and Tirole (1988), a focal price equilibrium and an equilibrium consisting of Edgeworth cycles coexist. In this study we investigate which of these two equilibria is more likely to emerge by means of a laboratory experiment. In...