Summary Much hope is put into the ‘‘four eyes principle’’ as an anti corruption device in many countries. However, as recent cases have shown, entire groups of decision makers can be corrupt as well. This paper reports on an experimental investigation of individual versus group decision...

Abstract Using a real effort experiment, we analyze the dependence of tax evasion on the amount of effort invested to generate income. In three treatments, subjects were either endowed with income or had to work moderately or arduously to earn it. In line with prospect theory, subjects evaded...

The great recession (2008) triggered an apparent discrepancy between empirical findings and macroeconomic models based on rational expectations alone. This gap led to a series of recent developments of a behavioral microfoundation of macroeconomics combined with the underlying experimental and...

We use an experiment to test the hypothesis that groups consisting of like-minded cooperators are able to cooperate irrespective of punishment and therefore have a lower demand for a costly punishment institution than groups of like-minded free riders, who are unable to cooperate without...

We analyze the natural experiment of ghost games in the 2019/2020 season of the German football Bundesliga and confirm previous studies showing that the home advantage diminishes if the stadium is empty. However, our paper is the first that distinguishes between effort- and skill-based tasks in...

In alpine skiing competitions, one of the coaches of the participating countries sets the course. This may provide an advantage, but it may also exert higher pressure on the racers. We analyze 40,150 men's and 36,968 women's performances from all competitions in alpine skiing's Slalom, Giant...

We conduct a bibliometric analysis and review the literature of the last six decades on ambiguity aversion. Comparing trends in theoretical, experimental, and empirical contributions, our study presents the main aspects that are discussed in this literature. We show the increasing relevance of...

Does it matter who pays for ratings? Yes, but not for the rating agencies' behavior. These are the findings of our experiment where we analyze the effect of the remuneration model of rating agencies on their assessments as well as on investors' and issuers' behavior. First, we find that rating...

The main goal of our study is to analyze how success and failure in crucial situations affect subsequent individual performance. Our study is based on evidence from a natural experiment of NBA (National Basketball Association) players: Based on play-by-play statistics of NBA games in 10 seasons...

By extending a typical endowment effect experiment with the possibility to win the endow-ment in a real effort contest, we found two enforcing effects that led to a complete market failure. Subjects who won the item in the competition had an extremely high willingness to accept (trophy effect)....