Social preferences and social influence effects ("peer effects") are well documented, but little is known about how peers shape social preferences. Settings where social preferences matter are often situations where peer effects are likely too. In a gift-exchange experiment with independent...

We study a classic mechanism design problem: How to organize trade between two privately informed parties. We characterize an optimal mechanism under selfish preferences and present experimental evidence that, under such a mechanism, a non-negligible fraction of individuals deviates from the...

Social preferences and social influence effects ("peer effects") are well documented, but little is known about how peers shape social preferences. Settings where social preferences matter are often situations where peer effects are likely too. In a gift-exchange experiment with independent...

We present a novel design measuring a correlate of social preferences in a high-stakes setting. In the Big Robber Game, a "robber" can obtain large personal gains by appropriating the gains of a large group of "victims" as seen in recent corporate scandals. We observed that more than half of all...

We compare social preference and social norm based explanations for peer effects in a threeperson gift-exchange game experiment. In the experiment a principal pays a wage to each of two agents, who then make effort choices sequentially. We find that both agents supply more effort in response to...

In experimental games, a substantial minority of players often fail to best respond. Using two-person 3x3 one-shot games, we investigated whether 'structuring' the pre-decision deliberation process produces greater consistency between individuals' stated values and beliefs on the one hand and...

In experimental games, a substantial minority of players often fail to best respond. Using two-person 3x3 one-shot games, we investigated whether 'structuring' the pre-decision deliberation process produces greater consistency between individuals' stated values and beliefs on the one hand and...

Mimicking standard features of electoral accountability and selection models, we conduct a computerized laboratory experiment in order to identify the influence of other-regarding preferences on democratic outcomes. We find that elected candidates are more pro-social towards their constituency...

We compare social preference and social norm based explanations for peer effects in a threeperson gift-exchange game experiment. In the experiment a principal pays a wage to each of two agents, who then make effort choices sequentially. We find that both agents supply more effort in response to...

Taking note of the wide variety and growing list of models in the literature to explain patterns of behavior observed in laboratory experiments, this paper identifies two tests, the Variety Test (ability of a model to explain outcomes under variety or alternative scenarios) and the Psychological...