Showing 1 - 10 of 219
subgame-perfect outcomes. We show that the logic of simple penal codes fails in repeated extensive-form games. We provide two …
Persistent link: https://www.econbiz.de/10005124002
We investigate the outcome of bargaining when a player’s pay-off from agreement is risky. We find that a risk-averse player typically increases his equilibrium receipts when his pay-off is made risky. This is because the presence of risk makes individuals behave 'more patiently' in bargaining....
Persistent link: https://www.econbiz.de/10005666445
In this paper we characterize a situation in which non-calculative trust has to play a role in the decision to cooperate. We then analyse the given situation in game theoretical terms and distinguish those aspects of players’ decisions that are cooperative from those that may be interpreted as...
Persistent link: https://www.econbiz.de/10005792217
We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non-competitive...
Persistent link: https://www.econbiz.de/10005792278
We consider a bargaining model of the interaction between a government and interest groups in which, unlike existing models, neither side is assumed to have all the bargaining power. The government will then find it optimal to constrain itself in the use of transfer policies to improve its...
Persistent link: https://www.econbiz.de/10005504570
The centrality of an agent in a network has been shown to be crucial in explaining different behaviors and outcomes. In this paper, we propose an axiomatic approach to characterize a class of centrality measures for which the centrality of an agent is recursively related to the centralities of...
Persistent link: https://www.econbiz.de/10011083213
It is a persistent finding in psychology and experimental economics that people's behavior is not only shaped by outcomes but also by decision-making procedures. In this paper we develop a general framework capable of modelling these procedural concerns. Within the context of psychological games...
Persistent link: https://www.econbiz.de/10005039581
This Paper discovers significant differences between southern and northern Europeans in a dynamic version of the ‘trust game’ played by Ph.D. students from different nationalities at the European University Institute. Our version of the trust game allows subjects to choose the receivers to...
Persistent link: https://www.econbiz.de/10005067472
, at school, and in personal relationships. Because a person generally has only imperfect knowledge of his own abilities …
Persistent link: https://www.econbiz.de/10005656299
Most economic models are based on the self-interest hypothesis that assumes that all people are exclusively motivated by their material self-interest. In recent years experimental economists have gathered overwhelming evidence that systematically refutes the self-interest hypothesis and suggests...
Persistent link: https://www.econbiz.de/10005656392