We analyze an experimental public goods game in which group members can endogenously determine whether they want to supplement a standard voluntary contribution mechanism with the possibility of rewarding or punishing other group members. We find a large and positive effect of endogenous...

While most papers on team decision-making find that teams behave more selfishly, less trustingly and less altruistically than individuals, Cason and Mui (1997) report that teams are more altruistic than individuals in a dictator game. Using a within-subjects design we re-examine group...

Industrial organization is mainly concerned with the behavior of large firms. Experimental industrial organization therefore faces a problem: How can firms be brought into the laboratory? The main approach relies on framing: Call individuals firms! This experimental approach is not in line with...

We present an experiment on strategic thinking and behavior of individuals and teams in one-shot normal-form games. Besides making choices, decision makers have to state their first- and second-order beliefs. We find that teams play the Nash strategy significantly more often, and their choices...

In a duopoly market, aspiration levels express how much sellers want to earn given their expectations about the other's behavior. We augment the sellers' decision task by eliciting their profit aspiration. In a first experimental phase, whenever satisficing is not possible, sales choices, point...

Empirical work on Akerlof's theory of gift exchange in labor markets has concentrated on the fair wage-effort hypothesis. In fact, however, the theory also contains a social component that stipulates that homogenous agents that are employed for the same wage level will exert more effort,...

ROC curves from the signal detection literature are used in an evolutionary analysis of one-shot and repeated prisoners' dilemmas: showing if there is any discounting of future payoffs, or any cost of searching for an additional partner, then cooperative players who contingently participate - in...

ROC curves from the signal detection literature are used in an evolutionary analysis of one-shot and repeated prisoners' dilemmas: showing if there is any discounting of future payoffs, or any cost of searching for an additional partner, then cooperative players who contingently participate - in...

In the Solidarity Game (Selten and Ockenfels, 1998), two "rich" persons can support a "poor" one. A strong positive correlation between one rich person's solidarity contribution and his expected contribution of the other is observed. This paper investigates the causality behind this correlation....

We experimentally study behavior in a simple voting game where players have private information about their preferences. With random matching, subjects overwhelmingly follow the dominant strategy to exaggerate their preferences, which leads to inefficiency. We analyze an exogenous linking...