communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post World … in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy … Keywords: trust, reciprocity, experimental economics, ordered probit Corresponding author: Niall O’Higgins Department …

Experimental Economics at the University of Innsbruck (sponsored by Raif- feisen Landesbank Tirol AG) is gratefully acknowleged. b … Introduction While incomplete contracts between principals and agents have been studied extensively in economics both from a …

. (1985). A near-rational model of the business cycle with wage and price inertia. Quarterly Journal of Economics, 100, 823 … explaining the significant deviations of real world economics from the competitive, general-equilibrium model (Akerlof, 2002 …–164. A, G. A. (1982). Labor contracts as partial gift exchange. Quarterly Journal of Economics, 97, 543–569. — (2002 …

and Economics (2003) at the University of Tilburg and at the European Meeting of the Economic Science Association (2003 …. Financial support from the Center for Experimental Economics at the University of Innsbruck (sponsored by Raiffeisen … evidence from economics and developmental psychology as well as our hypotheses that are derived from the large body of work …

, mainly students of business administration and economics, were volunteers recruited by mail-shot invitations. After being …. & Thaler, R. H. (1986), ‘Fairness and the As- sumptions of Economics’, Journal of Business 59, 285{300. Keser, C. & van Winden … Ride? Strategies and Learning in Public Good Experiments’, Journal of Public Economics 37, 291{304. Andreoni, J. (1990 …