While interest in social determinants of individual behavior has led to a rich theoretical literature and many efforts to measure these influences, a mature social econometrics has yet to emerge. This chapter provides a critical overview of the identification of social interactions. We consider...

For sufficiently low abatement costs many countries might undertake significant emission reductions even without any international agreement on emission reductions. We consider a situation where a coalition of countries does not cooperate on emission reductions but cooperates on the development...

We experimentally investigate a finitely repeated public good game with varying partners. Within each period, participants are pairwise matched and contribute simultaneously. Participants are informed about contributions and each participant evaluates her partner's contribution. At the beginning...

Industrial organization is mainly concerned with the behavior of large firms. Experimental industrial organization therefore faces a problem: How can firms be brought into the laboratory? The main approach relies on framing: Call individuals firms! This experimental approach is not in line with...

Die EU hat durch die Zinsenrichtlinie einerseits eindeutig von einer Politik, die auf einem Vertrauen gegenüber dem Bürger und einer gewissen Selbstbestimmung beruhte, zu einer Vorgehensweise gewechselt die durch Misstrauen und Kontrolle geprägt ist. Andererseits erscheinen die Regelungen der...

We study all-pay auctions with budget-constrained bidders who have access to fair insurance before bidding simultaneously over a prize. We characterize a unique equilibrium for the special cases of two bidders and one prize, show existence and a heuristic for finding an equilibrium in the case...

We present a model where divorcing spouses can choose to hire lawyers in their divorce process. Spouses encounter incentives as in the classical prisoners' dilemma: Despite the zero sum nature of the game and the lawyers' fees, each spouse has an incentive to hire a lawyer. We propose a simple...

For several years, an increasing number of firms are investing in Open Source Software (OSS). While improvements in such a non- excludable public good cannot be appropriated, companies can benefit indirectly in a complementary proprietary segment. We study this incentive for investment in OSS....

We analyse the effect of the uncertainty about the fundamentals on the probability of sudden stops of capital flows from a theoretical and empirical perspective. Our model predicts that the probability of crises increases with the uncertainty, ie. the dispersion of private signals about the true...

This paper analyzes the impact of uncertainty on the spread of stock market crises, both theoretically and empirically. The effect of uncertainty about the fundamentals on investment decisions is an important cause of financial crises propagating across countries. Firstly, a coordination game on...