When individuals trade with strangers, there is a temptation to renege on agreements. If repeated interaction or exogenous enforcement are unavailable, societies often solve this problem via institutions that rely on group, rather than individual, reputation. Groups can employ two mechanisms to...

Reciprocal feedback distorts the production and content of reputation information, hampering trust and trade efficiency. Data from eBay and other sources combined with laboratory data provide a robust picture of how reciprocity can be guided by changes in the way feedback information flows...

Feedback withdrawal mechanisms in online markets aim to facilitate the resolution of conflicts during transactions. Yet, frequently used online feedback withdrawal rules are flawed and may backfire by inviting strategic transaction and feedback behavior. Our laboratory experiment shows how a...

This paper examines whether an institution has a differing impa ct on cooperation if it is introduced by a representative of the affected partie s rather than exogenously imposed. The experimental design is able to control for selec tion effects arising from the democratic policy choice. I find...

The underpricing of initial public offerings is a well-documented fact of empirical equity market research. Theories explain this underpricing with market imperfections. We study three empirically relevant IPO mechanisms under almost perfect market conditions in the laboratory: a stylized book...

We theoretically and experimentally examine the implications of trusting behavior arising under sequential and simultaneous designs. In this institutional design problem, player A makes an investment choice, and player B decides whether to share the investment gains with player A. In the...

This paper examines a transformative tourism case study driven by local entrepreneurship in the coastal and post-violence/peripheral village of Zumaia, in the Basque Country (Spain). This paper aims at addressing an innovative methodology called ‘Tourism Living Lab through Multistakeholders’...

In response to the pandemic of COVID-19 and in lack of pharmaceutical solutions, many countries have introduced social and physical distancing regulations to contain the transmission of the virus. These measures are effective insofar as they are able to quickly change people’s habits. This is...

Reciprocity in feedback giving distorts the production and content of reputation information in a market, hampering trust and trade efficiency. Guided by feedback patterns observed on eBay and other platforms we run laboratory experiments to investigate how reciprocity can be managed by changes...

The paper studies a voting scheme where members of a committee voting sequentially on a known series of binary proposals are each granted a single extra bonus vote to cast as desired - a streamlined version of Storable Votes. When the order of the agenda is exogenous, a simple sufficient...