Studies show that free-form communication facilitates cooperation better thanrestricted communication. We investigate the reasons for this by comparing variouscommunication protocols in a sequential game where the buyer sets the price andthen the seller determines the quality. At the beginning...

Free riding can be made more costly by increasing either the probability of being caught or the severity of the punishment. However, neither option is without cost. What is the tradeoff between these strategies? In this study, we introduce an exogenous punishment mechanism that varies the...

The method of payment for penalties such as traffic tickets or library fines has become increasingly digitalized, with possible implications on the future effectiveness of deterring opportunistic behavior. Several recent experimental studies have suggested that people treat digital cash...

The method of payment for penalties such as traffic tickets or library fines has become increasingly digitalized, with possible implications on the future effectiveness of deterring opportunistic behavior. Several recent experimental studies have suggested that people treat digital cash...

We develop a simple model of collective experimentation and take it to the lab. In equilibrium, as in the recent work of Strulovici (2010), majority rule has a bias toward under experimentation, as good news for a minority of voters may lead a majority of voters to abandon a policy when each of...