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Persistent link: https://www.econbiz.de/10004042497
We theoretically and experimentally study a college admissions problem in which colleges accept students by ranking students' efforts in entrance exams. Students hold private information regarding their ability level that affects the cost of their efforts. We assume that student preferences are...
Persistent link: https://www.econbiz.de/10010982304
We study endogenous group formation in tournaments employing experimental threeplayer contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, players who are committed to expending...
Persistent link: https://www.econbiz.de/10010983248
This paper studies behavioral responses to taxes in financial markets. It is motivated by recent puzzling empirical evidence of taxable municipal bond yields significantly exceeding the level expected relative to tax exempt bonds. A behavioral explanation is a tax aversion bias, the phenomenon...
Persistent link: https://www.econbiz.de/10010983366
Dismissal rules, i.e. legally enforced long term contracts, have beem defended against criticism for, among other things, providing efficient incentives to invest in relationship specific skills. However, in many situations efficient investment can also be attained by spot contracts. We...
Persistent link: https://www.econbiz.de/10010983826
experiment, a temptations-constrained version of deal-me-out emerges as the clear winner. …
Persistent link: https://www.econbiz.de/10011199691
the central bank. The game used in this experiment is a stylized version of a model of Bech and Garratt (2006) in which …
Persistent link: https://www.econbiz.de/10011199952
This paper experimentally examines the effect of electoral delegation on providing global public goods shared by several groups. Each group elects a delegate who can freely decide on each group member’s contribution to the global public good. Our results show that people mostly vote for...
Persistent link: https://www.econbiz.de/10011202932
We study the role of an imbalance in fighting strengths when players bargain in the shadow of conflict. Our experimental results suggest: In a simple bargaining game with an exogenous mediation proposal, the likelihood of conflict is independent of the balance of power. If bargaining involves...
Persistent link: https://www.econbiz.de/10011202941
investigation of individual versus group decision making in a corruption experiment. We find that the group decisions, as compared … between Germany and China with respect to the effect of the teams’ gender composition were found. In Germany, groups that … gender combination have shown a higher inclination to make corrupt decisions than the groups that are homogenous with respect …
Persistent link: https://www.econbiz.de/10011202947