This paper characterizes the set of equilibrium networks in the two-way flow model of network formation with small decay, and this for all increasing benefit functions of the players. We show that as long as the population is large enough, this set contains large- as well as small-diameter...

Information decay in networks generates two effects. First, it differentiates how well informed different players within the same component are, and therefore how attractive they are to sponsor links to. Second, players may prefer to sponsor links to players they are already connected to. By...

Sharing economy platforms commonly claim to bring about positive social impacts, such as facilitating contact between individuals that would not have met otherwise. According to contact theory, such intergroup contact would change the stereotypes that individuals hold of outgroup members, such...

Does competition affect moral behavior? This fundamental question has been debated among leading scholars for centuries, and more recently, it has been tested in experimental studies yielding a body of rather inconclusive empirical evidence. A potential source of ambivalent empirical results on...

One feature of online auctions that has attracted much interest is jump bidding, whereby a bidder raises the price by more than what is needed to become the highest bidder. The effects of jump bidding on the final price remain unclear. Our study involves an in vivo experiment during live...

Policy makers use several international indices that characterize countries according to the quality of their institutions. However, no effort has been made to study how the honesty of citizens varies across countries. This paper explores the honesty among citizens across sixteen countries with...