When employers can incur losses from the labor relationship in a gift exchange game, they offer lower wages on average than in a no-loss relationship. Taking employers’ risk of losing money into account, employees exert more effort per wage unit.

We introduce the joy-of-destruction game. Two players each receive an endowment and simultaneously decide on how much of the other player's endowment to destroy. In a treatment without fear of retaliation, money is destroyed in almost 40% of all decisions.

Two of the top economics journals have institutional ties to a specific university, the Quarterly Journal of Economics (QJE) to Harvard University and the Journal of Political Economy (JPE) to the University of Chicago. Researchers from Harvard, but also nearby Massachusetts Institute of...