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It is still an open question when groups perform better than individuals in intellectual tasks. We report that in a company takeover experiment, groups placed better bids than individuals and substantially reduced the winner’s curse. This improvement was mostly due to peer pressure over the...
Persistent link: https://www.econbiz.de/10008642477
The 1-shot ?-beauty contest is a non-equilibrium strategic game under bounded rationality conditions, while equilibrium is approached if the game is played iteratively sufficiently many times. Experimental data of the 1-shot setting of the 0-equilibrium game show a common pattern: The spectrum...
Persistent link: https://www.econbiz.de/10005627864
Many studies document failures of expected utility’s key assumption, the independence axiom. Here, we show that independence can be decomposed into two distinct axioms – betweenness and homotheticity – and that these two axioms are necessary and sufficient for independence. Thus,...
Persistent link: https://www.econbiz.de/10011074871
We study in a sample of 1,070 primary school children, aged seven to eleven years, how altruism in a donation experiment is related to children’s risk attitudes and intertemporal choices. Examining such a relationship is motivated by theories of reciprocal altruism that provide a cornerstone...
Persistent link: https://www.econbiz.de/10010889827
’ first- and second-order beliefs on truth-telling. While senders are more likely to lie if they expect the receiver to trust … believe the receiver expects them to tell the truth. We observe no such dependence on second-order beliefs in a payoff … equivalent game of matching pennies. Our results therefore indicate an impact of second-order beliefs as derived in models of …
Persistent link: https://www.econbiz.de/10010942533
Cason and Plott (2014) show that subjects’ misconception about the incentive properties of the Becker-DeGroot-Marschak (BDM) value elicitation procedure can generate data patterns that look like - and might thus be misinterpreted as evidence for - preferences constructed from endowments or...
Persistent link: https://www.econbiz.de/10011272684
We present experimental evidence from a bilingual city in Northern Italy on whether the language spoken by a partner in a prisoner's dilemma game affects behavior and leads to discrimination. Running a framed field experiment with 828 six- to eleven-year old primary school children in the city...
Persistent link: https://www.econbiz.de/10011274372
Social preference research has received considerable attention in recent years. Researchers have demonstrated that the … important to be aware of the fact that the empirical basis of this literature relies to a large extent on experiments that do …-subject anonymity may create selsh incentives to engage in seemingly other-regarding behavior. If this were the case these experiments …
Persistent link: https://www.econbiz.de/10009293828
Previous experimental work provides encouraging support for some of the central assumptions underlying Hart and Moore (2008)’s theory of contractual reference points. However, existing studies ignore realistic aspects of trading relationships such as informal agreements and ex post...
Persistent link: https://www.econbiz.de/10009358972
We compare experimentally the revealed distributional preferences of individuals and teams in allocation tasks. We find that teams are significantly more benevolent than individuals in the domain of disadvantageous inequality while the benevolence in the domain of advantageous inequality is...
Persistent link: https://www.econbiz.de/10010839590