In this article we examine the setting up of an eductive type of reasoning process in a negative feedback situation. We analyse a variant of a one-shot beauty contest game. Our results show a reasoning level of around 2 steps of introspection, which is enough to reach rapidly the rational...

This paper shows that if a very small, exogenously given probability of terminating the exchange is introduced in an elementary investment game, more reciprocators will choose the defection strategy. Everything happens as if they "hide behind probabilities" in order to break the trust...

We study team formation in real-effort experiments in which participants bargain over a jointly produced outcome depending both on effort and ability. Participants decide between undertaking a task alone or with another participant by releasing the minimum share of the future team outcome that...

Envy is a complex emotion that influences the behavior of envious and envied individuals. Because envy can imply ill will, discontent or dislike of the envied individual who possesses something that the envious individual desires, or aspiration to emulate the envied position, it can lead the...

We study the role of positional concerns in explaining the (non-) diffusion of profitable and environmentally friendly innovations in situations where there is no conventional prisoner dilemma. Based on anecdotal evidence from farming activities, we introduce the concept of negative positional...