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 (monopolistic) markets. We then introduce a regulated intermediate …

economics. This paper explores voting on a scheme of intergroup competition which facilitates cooperation in a social dilemma … situation. Experimental results show that the competitive scheme fosters cooperation. Competition is popular but the electoral … outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost …

We study the effects of reputation and competition in a stylized market for experience goods. If interaction is … anonymous, such markets perform poorly: sellers are not trustworthy, and buyers do not trust sellers. If sellers are …, we find that competition, coupled with some minimal information, eliminates the trust problem almost completely. …