This paper analyzes vertical cross-shareholding, that is, the mutual holding of a minority of shares between vertically related firms. We investigate the conditions under which cross-shareholding improves efficiency. First, we explore the issue in a game-theoretic model and find that...

A conditional cooperator in a public goods game wants to match hispartners' expected contribution. We investigate theoretically and empiricallywhether (and to what extent) conditional cooperation can explainhow individual contributions evolve in a repeated two-person public goodsexperiment using...

Bidding challenges learning theories since experiences with the same bid vary stochastically:the same choice can result in either a gain or a loss. In such an environment thequestion arises how the nearly universally documented phenomenon of loss aversion affectsthe adaptive dynamics. We analyze...

The Nash Bargaining problem in the context of a random utility modelyields a stochastic demand for each player, conditional on his or her beliefs re-garding the other player's behavior. We derive a symmetric logit equilibriumunder naive expectations that converges to the Nash axiomatic solution...

In a large scale newspaper experiment 5,132 readers of the German weekly, Die Zeit, participated in a three-person bargaining game. In our data analysis we focus on (1) the influence of age, gender, profession and the medium chosen for participation on bargaining behavior and on (2) the external...

A conditional cooperator in a public goods game wants to match his partners' expected contribution. We investigate theoretically and empirically whether (and to what extent) conditional cooperation can explain how individual contributions evolve in a repeated two-person public goods experiment...

This paper purports to provide experimental evidence explaining a number of stylized facts associated with the behaviour of financial returns, in particular, the fat tailed nature of their distribution and the persistence in their volatility. By means of a laboratory experiment, we will...

In a large scale newspaper experiment 5,132 readers of the German weekly, Die Zeit, participated in a three-person bargaining game. In our data analysis we focus on (1) the influence of age, gender, profession and the medium chosen for participation on bargaining behavior and on (2) the external...

We study the effects of leadership on the private provision of a public good when group members are heterogeneously endowed. Leadership is implemented as a sequential public goods game where one group member contributes first and all the others follow. Our results show that the presence of a...