Facing a stochastic market wage, which is independent of their own hiring policy, employersoffer contracts specifying fixed wage, revenue share and employment duration.In ongoing employment relations it depends on the treatment whether fixed wages canbe only increased or also decreased. Will the...

This paper studies the response times of experimental subjects playingthe Ultimatum game in a laboratory setting using monetary incentives.We find that proposals are not significantly correlated with responsetime, whereas responders’ behavior is positively and significantlycorrelated. Hence,...

In a public goods experiment, subjects can vary over a period of stochasticlength two contribution levels: one is publicly observable (their cheap talkstated intention), while the other is not seen by the others (their secretintention). When the period suddenly stops, participants are restricted...

We perform an experimenta linvestigation using a dictator game inwhich individuals must make a moral decision —to give or not to give anamount of money to poor people in the Third World. A questionnaire inwhich the subjects are asked about the reasons for their decision showsthat, at least in...

Can two negotiators fail to agree when both the size of the surplus and the rationalityof the negotiators are common knowledge? We show that the answer is affirmative.When the negotiators can make irrevocable commitments at a low but positive cost,the unique symmetric equilibrium entails...

Parimutuel betting markets are simplified financial markets, andcan thus provide a clearer view of pricing issues which are more complicatedelsewhere. Though empirical studies generally conclude thatthe parimutuel betting markets are surprisingly efficient, it is alsofound that for horses with...

We consider guilt averse agents and principals and study the effects ofguilt on optimal behavior of the principal and the agent in a moral hazardmodel.The principal’s contract proposal contains a target effort in addition tothe monetary incentive scheme. By accepting the agreement, the...

´This paper aims to analize the role of personal identity indecision making. To this end, it starts by reviewing criticallythe growing literature on economics and identity. Consideringthe ambiguities that the concept of social identity poses, our proposalfocuses on the concept of personal...

We experimentally examine how group identity affects trust behaviorin an investment game. In one treatment, group identity isinduced purely by minimal groups. In other treatments, group membersare additionally related by outcome interdependence establishedin a prior public goods game. Moving...

Two firms compete on a sales market as well as in hiring labor. The duopolists'sales levels depend on their workforce. There are two each of two typesof workers, mobile and immobile, with differing effort costs. An immobileworker's eort costs are lower when he is employed by the local firm,...