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This paper studies the effect of introducing costly partner selection for the voluntary contribution to a public good. Subjects participate in six sequences of five rounds of a twoperson public good game in partner design. At the end of each sequence, subjects can select a new partner out of six...
Persistent link: https://www.econbiz.de/10010293742
We present an experiment in which extrinsic signals may generate sunspot equilibria. The game has a unique symmetric non-sunspot equilibrium, which is also risk dominant. Other equilibria can be ordered according to risk dominance. By comparing treatments with different information structure, we...
Persistent link: https://www.econbiz.de/10010305959
We introduce the notion of strategic awareness in experimental games which captures the idea that subjects realize they are playing a game and thus have to form beliefs about others' actions. The concept differs from both, rule understanding and rationality. We then turn to experimental evidence...
Persistent link: https://www.econbiz.de/10011298719
Among residents of an informal housing area in Cairo, we examine how dictator giving varies by the social distance between subjects - friend versus stranger - and by the anonymity of the dictator. While giving to strangers is high under anonymity, we find - consistent with Leider et al. (2009) -...
Persistent link: https://www.econbiz.de/10010321488
The authors show how the influence of extrinsic random signals depends on the noise structure of these signals. They present an experiment on a coordination game in which extrinsic random signals may generate sunspot equilibria. They measure how these signals affect behavior. Sunspot equilibria...
Persistent link: https://www.econbiz.de/10010343337
Contest designers or managers who want to maximize the overall revenue of a contest (relative performance scheme) are frequently concerned with a trade-off between contest homogeneity and inclusion of contestants with high valuations. In our experimental study, we find that it is not profitable...
Persistent link: https://www.econbiz.de/10011639356
This paper presents an experiment on a coordination game with extrinsic random signals, in which we systematically vary the stochastic process generating these signals and measure how signals affect behavior. We find that sunspot equilibria emerge naturally if there are salient public signals....
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