Economic and social interaction takes place between individuals with heterogeneous characteristics. We investigate experimentally the emergence and informal enforcement of different contribution norms to a public good in homogeneous and different heterogeneous groups. When punishment is not...

We identify a strong and significant negative effect of substitutions in (irrelevant) early games in worldcup and olympic football tournaments on performance in later rounds. We argue that this effect is due to the psychological consequences of such a decision and evaluate alternative possible...

This paper studies the dynamic relationship between input and output of innovation inDutch manufacturing using an unbalanced panel of enterprise data from five waves of the Community Innovation Survey during 1994-2004. We estimate by maximum likelihood a dynamic panel data bivariate tobit with...

Previous theoretical literature proved the existence of an upper bound on efficiency in bilateral bargaining. In contrast, experiments consistently find players obtaining higher efficiency than the upper bound if they are allowed to communicate before the 1/2-double auction. We bridge this gap...

This paper studies risk attitudes using a large representative survey and a complementary experiment conducted with a representative subject pool in subjects'' homes. Using a question asking people about their willingness to take risks "in general", we find that gender, age, height, and parental...

The paper studies the model of multilateral bargaining over the alternatives representedby points in the m–dimensional Euclidean space. Proposers are chosen randomly and the acceptance of a proposal requires the unanimous approval of it by all the players. The focus of the paper is on the...

This paper analyzes the empirical link between asset prices, consumption and the trade balance using a global macroeconometric model developed by Pesaran, Schuermann, and Weiner (2004). The model is estimated for 29 countries with quarterly data over the period 1981Q1 - 2006Q4. Motivated by...

In this paper I analyze optimal monetary and fiscal policy in a monetary union from a union-wide perspective. For this purpose I lay out a New Keynesian business cycle model of a currency union with rigid real wages. The fiscal policy is implemented at the country level through the choice of...

In the theory of judgment aggregation, it is known for which agendas of propositions it is possible to aggregate individual judgments into collective ones in accordance with the Arrow-inspired requirements of universal domain, collective rationality, unanimity preservation, non-dictatorship and...

We conduct a repeated VCM (voluntary contribution mechanism) experiment using thestrategy method. We compare a partner and a stranger design and find that participantsin the partner treatment provide (i) higher initial contributions, (ii) higher contributionson average over all periods, and...