We run an experiment where groups of six subjects must set prices in a non-stationary macroeconomic environment, where prices are complements. The exogenous variable, a business indicator, is common knowledge and prices are flexible, disregarding sticky prices or sticky information. In a first...

Corrupt arrangements are characterized by a high risk of opportunism: double-dealing, whistle-blowing and extortion are significant uncertainties for participants in corrupt transactions. This paper demonstrates how legislators may use an asymmetric design of (criminal) sanctions and leniency...

How is negative reciprocity cultivated in an environment of violent conflict? This study investigates how students in the West Bank react to unfair proposals in an ultimatum game. Proposals submitted with Hebrew as compared to Arab handwriting are rejected more often. Israelis must offer 15...

Corruption research has centered on three fundamental questions: What determines corruption? What effects does corruption have? And finally, what can we do to reduce corruption effectively and efficiently? Corruption has been, and continues to be researched so intensively that it is hard to keep...