Multiple group memberships are the rule rather than the exception. Within a linear public good game, we experimentally investigate two possible factors that impact the decision to cooperate in a smaller, local or a larger, global group: diverging marginal per capita returns, resulting in...

The effect of introducing costly partner selection for the voluntary contribution to a public good is examined. Participants are in six sequences of five rounds of a two-person public good game in partner design. At the end of each sequence, they can select a new partner out of six group...

Overconfidence is used to explain various instances of detrimental decision making. In behavioral economic and finance models, it is usually captured by misperceiving the reliability of signals and results in overweighting private information. Empirical tests of these models often fail to find...

The overvaluation hypothesis (Miller, 1977) predicts that (a) stocks are overvalued in the presence of short selling restrictions and that (b) the overvaluation increases in the degree of divergence of opinion. We design an experiment that allows us to test these predictions in the laboratory....