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There is strong evidence that people exploit their bargaining power in competitive markets but not in bilateral bargaining situations. There is also strong evidence that people exploit free-riding opportunities in voluntary cooperation games. Yet, when they are given the opportunity to punish...
Persistent link: https://www.econbiz.de/10005504682
This paper discusses recent neuroeconomic evidence related to other-regarding behaviours and the decision to trust in other people’s other-regarding behaviour. This evidence supports the view that people derive non-pecuniary utility (i) from mutual cooperation in social dilemma (SD) games and...
Persistent link: https://www.econbiz.de/10005497729
The most fundamental solution concepts in Game Theory – Nash equilibrium, backward induction, and iterated elimination of dominated strategies – are based on the assumption that people are capable of predicting others' actions. These concepts require people to be able to view the game from...
Persistent link: https://www.econbiz.de/10005497744
Theories abound for why individuals give to charity. We conduct a field experiment with donors to a Yale University … theories, we conduct a laboratory experiment with undergraduates, and found no evidence to support the alternative, altruistic …
Persistent link: https://www.econbiz.de/10011084285
We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our … experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or …
Persistent link: https://www.econbiz.de/10011084365
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
We provide experimental evidence that contractual incompleteness, ie, the absence of third party enforcement of workers’ effort or the quality of the good traded causes a fundamental change in the nature of market interactions. If contracts are complete the vast majority of trades are...
Persistent link: https://www.econbiz.de/10005661770
experiment to measure risk attitudes. We find robust evidence of substantial risk aversion. As an extension, we esimate the …
Persistent link: https://www.econbiz.de/10005661826
The storable votes mechanism is a method of voting for committees that meet periodically to consider a series of binary decisions. Each member is allocated a fixed budget of votes to be cast as desired over the multiple decisions. Voters are induced to spend more votes on those decisions that...
Persistent link: https://www.econbiz.de/10005662312
who work in the trading room of a large bank and novices (MBA students). In an experimental study, we analyse two ways of …
Persistent link: https://www.econbiz.de/10005667085