A solidarity game was conducted where participants were able to choose between two lotteries with same expected values. However, in one lottery, the risky one, participants faced a higher probability to receive no endowment. The winners were then able to discriminate between subjects risk...

A solidarity game was conducted where participants were able to choose between two lotteries with same expected values. However, in one lottery, the risky one, participants faced a higher probability to receive no endowment. The winners were then able to discriminate between subjects risk...

Most incomes underlie some risk, i.e. ex ante they can be regarded as a lottery ticket. In every society, the lucky winners of this lottery compensate unlucky losers (unemployed workers or bankrupt entrepreneurs) privately and/or by public insurances. Do voluntary solidarity payments depend on...

In the Solidarity Game (Selten and Ockenfels, 1998) lucky winners of a lottery can transfer part of their income to unlucky losers. Will losers get smaller transfers if they can be assumed to be (partly) responsible for their zero income because they have chosen riskier lotteries (Trhal and...

This paper investigates whether contest schemes induce excessive risk-taking by implementing in the laboratory a novel stopping task based on the contest model of Seel and Strack (2013). In this stylized setting, managers who face contest payoffs have an incentive to delay halting projects with...