This paper considers the problem of private provision of intertemporal public goods with stock effects and shows how the deposit based solution proposed in Gerber and Wichardt (2009) can be modified to apply to this case

This paper suggests a potential rationale for the recent empirical finding that overconfident agents tend to self-select into more competitive environments (e.g. Dohmen and Falk, 2006). In particular, it shows that moderate overconfidence in a contest can improve the agent's performance relative...

This paper reports data from an ultimatum mini-game in which responders first had to choose whether or not to participate. Participation was costly, but the participation cost was smaller than the minimum payoff that a responder could guarantee himself in the ultimatum game. Compared to a...

This paper investigates the effectiveness of two instruments designed to defer termination in the centipede game: an insurance against termination by the opponent, and an option to offer the opponent a bonus for not terminating the game. The rational prediction in both cases is passing until...

This paper proposes a bounded rationality approach to model equilibrium play in games. It is based on the observation that decision makers often do not seem to fully distinguish between different but seemingly similar decisions. To capture this, for each player a similarity grouping of decisions...

This paper discusses the behavioural e ffects of cognitive dissonance in conjunction with cooperative social norms and highlights their relevance for the interpretation of (non)cooperative behaviour in economic lab experiments. In particular, it is argued that, if subjects are used to...

That individual identity influences economic decision making was convincingly argued by Akerlof and Kranton (2000, 2004). However, as individual identity will commonly be based on the social affiliation with different groups, conflicting interests also concerning identity may arise. This paper...

This paper emphasises a potential purely selfish motivation for behavioural altruism. It is based on personal status seeking and the observation that individual status derives also from the groups the individual identifies with. Altruistic behaviour within the group, then, can be rationalised as...

In a first attempt to apply the global games methodology to signalling games, Ewerhart and Wichardt (2004) analyse a beer-quiche type signalling game with additional imperfect information about the preferences of the receiver. Their approach allows them to dismiss the unreasonable pooling on...

A global signaling game is a sender-receiver game in which the sender is only imperfectly informed about the receiver's preferences. The paper considers an economically relevant class of signaling games that possess more than one Perfect Bayesian equilibrium. For this class of games, it is shown...