How and why do groups form? In many cases, group formation is endogenous to the actions that individual members take and the norms associated with these actions. In this paper, we conduct an experiment that allows groups to form endogenously in the context of the classic voluntary contribution...

We study the impact of team decision making on market behavior and its consequences for subsequent individual performance in the Wason selection task, the single-most studied reasoning task. We reformulated the task in terms of ?assets? in a market context. Teams of traders learn the task?s...

We experimentally study auctions versus grandfathering in the initial assignment of pollution permits that can be traded in a secondary spot market. Low and high emitters compete for permits in the auction, while permits are assigned for free under grandfathering. In theory, trading in the spot...

The direct sale of emissions allowances by auction is an emerging characteristic of cap-and-trade programs. This study is motivated by the observation that all of the major implementations of cap-and-trade regulations for the control of air pollution have started with a generous allocation of...

The EU proposal on the quantity restraint of the emissions trading in the Kyoto Protocol aims at reducing the so called hot air that would be generated by the purchase of emissions permits sold by a country whose actual emissions are much lower than the assigned amount. In this paper we show...

This paper studies public good provision in the laboratory using voluntary contribution mechanism, in a cross-cultural experiment conducted in the United States and Japan.

We conducted an experiment to examine the performance of the bilateral trading institution in GHG emissions trading. First, we found that the efficiency of bilateral trading is quite high, regardless of the disclosure or closure of contracted price and/or marginal abatement cost curve...

We re-evaluate two experiments by Hizen and Saijo (1999a,b) to examine the performance of bilateral trading and double auction institutiions in GHG emissions trading.

We use the voluntary contribution mechanism to investigate whether smaller action sets lead to higher cooperation rates. We ?nd that this is the case for groups of four players.

In this paper, we investigate individuals’ investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their status (rank). We...