Behavioural economics and economic experiments can offer valuable insights to policymakers. Liberal or soft paternalism assumes that governmental nudging through the conscious setting of defaults in order to overcome potential behavioural anomalies can lead to better outcomes without giving up...

We report on experimental duopoly markets with heterogeneous goods. In these markets, sellers first choose capacities and then prices. While capacities remain fixed for either five or ten periods, prices have to be chosen in every period. The experiments starts with two sets of exogenously...

This paper investigates whether providing strong cooperation incentives only at the outset of a group interaction spills over to later periods to ensure cooperation in the long run. We study a repeated linear public-good game with punishment opportunities and a parameter change after the first...

Taking the initiative is a crucial element of leadership and an important asset for many jobs. We assess this element of leadership in a game in which it emerges spontaneously since people have a non-obvious possibility to take the initiative. We can show that leadership in this game correlates...

This paper presents experimental evidence that tax compliance is path dependent. For given values of the audit probability and the fine for tax evasion, we compare the income declaration of subjects who faced a change in one of the two parameters to that of subjects who experienced no such...