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with a novel application of contest theory and provide experimental evidence. I show that a favored candidate's threat of …
Persistent link: https://www.econbiz.de/10013307255
The theory of infinitely repeated games lacks predictive power due to equilibrium multiplicity and its insensitivity to … approach, which mitigates the shortcomings of the theory. In particular, we study a standard infinitely repeated prisoner … boost cooperation and coordination on cooperation relative to the standard game, unlike what a theory based on pure material …
Persistent link: https://www.econbiz.de/10012913715
By providing incentives for sellers to act in a trustworthy manner, reputation mechanisms in many online environments can mitigate moral-hazard problems when particular buyers and sellers interact infrequently. However, these mechanisms rely on buyers sharing their private information about...
Persistent link: https://www.econbiz.de/10014212262
This paper experimentally examines the selection of equilibria in dynamic games. Our baseline treatment is a two-state extension of an indefinitely repeated prisoner's dilemma, which we modify in series of treatments to study the focality of efficiency and symmetry, the effect dynamic and static...
Persistent link: https://www.econbiz.de/10013019850
We examine the effects of incentives in a simple model, where a set of rational agents works on a joint task. In the static model, we show that higher incentives (i.e., higher rewards for success) positively affect the success rate and the agents’ payoffs. This is in contrast to the dynamic...
Persistent link: https://www.econbiz.de/10013310470
knowledge. We test this result in a laboratory experiment. The data cannot confirm the predicted welfare dominance of private … information about the multiplier. We discuss potential reasons for the deviation between theory and experimental data. …
Persistent link: https://www.econbiz.de/10012422494
knowledge. We test this result in a laboratory experiment. The data cannot confirm the predicted welfare dominance of private … information about the multiplier. We discuss potential reasons for the deviation between theory and experimental data. …
Persistent link: https://www.econbiz.de/10012287806
This paper examines experimentally the reputation building role of disclosure in an investment / trust game. It provides experimental evidence in support of sequential equilibrium behavior in a finitely repeated investment / trust game where information asymmetry raises the possibility of...
Persistent link: https://www.econbiz.de/10014200864
strong support for these solutions in a laboratory experiment, and show how they can be simply implemented for popular school …
Persistent link: https://www.econbiz.de/10014477372
-registered experiment with 1,260 subjects. In the first wave we vary the level of awareness of subjects' past dishonesty and explore the …
Persistent link: https://www.econbiz.de/10012494900