This study revisits the issue of hypothetical and actual willingness to pay. In two recent letters the validity of the contingent valuation method has been questioned. The studies include comparisons of hypothetical and actual economic commitments that were elicited through two different...

Using unique and unpublished panel data from selected US cities, the paper investigates the consequences of ignoring unobserved heterogeneity in the unit of observation when estimating the economic model of crime. Results confirm that neglecting to control for unobserved heterogeneity overstates...

Herein it is shown that increased complexity does not necessarily imply more coordination failure. Experienced people playing a 4-player spatial grid game with over 68 000 strategy choices and (68 000)4 potential outcomes were as likely to find the Pareto dominant Nash equilibrium as in a...

How unilateral delegation by a citizens' group with lower ability than a firm affects individual and total effort and the contest favourite under the two reimbursement systems are examined. A citizens' group that unilaterally hires a delegate to represent them causes the firm to increase its...

The letter explores how transaction costs affect the efficiency and rationality of Coasian bargaining. Efficiency remained relatively robust with low transaction costs, but was significantly reduced with high transaction costs. A cheap talk protocol increased efficiency. Rationality was...

It is found that nonconvexities do not reduce the overall efficiency of Coasean bargaining in the laboratory. Also, it is observed that most bargainers act in their own constrained self-interest when bargaining over an efficient corner solution relative to the standard baseline case.

This paper employs a sample selection model to analyse the effects of a location's tax climate on manufacturing activity from 1974-1994. Results reveal the 'tax effect' varies substantially across industry and is significant in half of the industries analysed-chemical and allieds and food and...