There is evidence that bidders fall prey to the winner's curse because they fail to extract information from hypothetical events - like winning an auction. This paper investigates experimentally whether bidders in a common value auction perform better when the requirements for this cognitive...

Using a repeated public good game with stranger matching, we compare how two different reputation systems with endogenous evaluations affect rates of cooperation. Contributions are public information and each participant evaluates her partner's contribution. At the beginning of each period,...

Two separate bodies of work have examined whether culture affects cooperation in economic games and whether cooperative or non-cooperative decisions occur more quickly. Here, we connect this work by exploring the relationship between decision time and cooperation in American versus Indian...

We study a model in which individual agents use simple linear first order price forecasting rules, adapting them to the complex evolving market environment with a smart Genetic Algorithm optimization procedure. The novelties are: (1) a parsimonious experimental foundation of individual...

Beliefs are a central determinant of behavior. Recent models assume that beliefs about or the anticipation of future consumption have direct utility-consequences. This gives rise to informational preferences, i.e., preferences over the timing and structure of information. Using a novel and...

In this paper we analyze negative reciprocity theoretically as well as experimentally. Although the reciprocity model of Dufwenberg and Kirchsteiger (2004) is often cited in the literature to justify why people punish unkind behavior, we show that this model is not able to predict punishments in...