This paper reports results from a laboratory experiment that investigates the Meltzer-Richard model of equilibrium tax rates, inequality, and income redistribution. We also extend that model to incorporate social preferences in the form of altruism and inequality aversion. The experiment varies...

In this paper we experimentally investigate the impact that competing for funds has on the risk-taking behavior of laboratory portfolio managers compensated through an option-like scheme according to which the manager receives (most of) the compensation only for returns in excess of...

One of the key roles of government is to coordinate the activities of citizens. One reason why governments are efficient facilitators of coordinated action, in addition to their ability to force compliance or tax, is that they are typically endowed with more information than the individuals they...