Existing models of regret aversion assume that individuals can make an ex-post comparison between their choice and a foregone alternative. Yet in many situations such a comparison can be made only if someone else chose the alternative option. We develop a model where regret-averse agents must...

Arguably, for many citizens the perceived expected disutility from sanctions is smaller than the monetary gain from tax evasion. Nevertheless most people pay their taxes most of the time. In a lab experiment, we show that the willingness to pay taxes even absent enforcement is indeed pronounced....

We present an online experiment in which we investigate the impact of perceived social acceptability on online hate speech, and measure the causal effect of specific interventions. We compare two types of interventions: counter-speaking (informal verbal sanctions) and censoring (deleting hateful...

Economic preferences - like time, risk and social preferences - have been shown to be very influential for real-life outcomes, such as educational achievements, labor market outcomes, or health status. We contribute to the recent literature that has examined how and when economic preferences are...

This paper explores the impact of debarment as a deterrent of collusion in first-price procurement auctions. We develop a procurement auction model where bidders can form bidding rings, and derive the bidding and collusive behavior under no sanction, debarment and fines. The model's predictions...

The paper discusses the problem of valuation in bank resolution. In an overview over the most relevant principles of valuation theory, the paper notes the difficulties inherent in valuing risks and illiquidity in holding non-traded assets. Subsequently, the paper briefly reviews the resolution...

Reforms of financial regulation after the crisis of 2007-2009 raise the question of what is the relation between financial regulators and competition authorities. Should competition authorities play a role in financial regulation? Should they co-operate with financial regulators? Or should they...

The efficiency of financial markets and their potential to produce bubbles are central topics in academic and professional debates. Yet, surprisingly little is known about the contribution of financial professionals to price efficiency. To close this gap, we run 86 experimental markets with 294...

Der Aufsatz setzt sich kritisch mit verschiedenen Vorschlägen zur Reform des Geldwesens seit der Finanzkrise und mit den zugrundeliegenden Vorstellungen von "Geld" auseinander. Das Wort "Geld" wird in dieser Diskussion für verschiedene Dinge und in verschiedenen Bedeutungen gebraucht. Als...

Group tasks are often organized by a list: group members state their willingness to contribute by entering their names on a publicly visible, empty list. Alternatively, one could organize the group task by starting with a full list: every group member is already entered on the list and...