We introduce a simple game-theoretical model that captures the main aspects of the repeated interaction between an issuer and a credit-rating agency. It involves up-front payments of issuer-fees and direct publication of requested ratings. Due to pecuniary injuries for untruthful ratings, the...

This paper describes the results of an experiment applying the strategy method to analyze the behavior of subjects in an 8-player common pool resource (CPR) game. The CPR game consists of a constituent game played for 20 periods. The CPR game has a unique optimum and a unique subgame perfect...

This paper compares the effects of two leadership styles: leading by pre-game communication and leading by example using an iterated voluntary contribution game. We find that pre-game communication increases the level of individual contributions in the game and has essentially the same impact on...

We compare a partners condition, where the same small group of subjects plays a repeated public good game, to a strangers condition, where subjects play this game in changing group formations. From the first period onward, subjects in the partners condition contribute significantly more to the...

We study the robustness of reputation management systems against distortions in rating behavior. In a laboratory trust experiment with reputation management, we mimic a positive bias by exclusively offering the option to rate positively or to give no rating. As predicted by theoretical...

This experimental study examines both spontaneous and strategically planned behavior of boundedly rational sub- jects in a dynamic duopoly situation. Spontaneous behavior is observed in game-playing experiments where students from the University of Bonn have played the dynamic duopoly game by...

We present an experiment where two players bargain with a third player. They can bargain either separately or form a joint venture to bargain collectively. Our theoretical benchmark solution predicts decentralized bargaining, as only one player has an interest in forming a joint venture....

In a series of experimental games, each of two players may choose between remuneration based on either private or team effort. Although at least one of the players has the subgame perfect equilibrium strategy to choose remuneration based on private effort, we frequently observe team remuneration...

We present an experiment on voluntary contributions to a public good. The game has a dominant strategy solution in the interior of the strategy space. In the experiment we observe significant over-contribution. This result is similar to those of the typical corner solution experiments.