Anecdotal, empirical, and experimental evidence suggests that offering extrinsic rewards for certain activities can reduce people's willingness to engage in those activities voluntarily. We propose a simple rationale for this 'crowding out' phenomenon, using standard economic arguments. The...

We conduct experiments to investigate the effects of different majority requirements on bargaining outcomes in small and large groups. In particular, we use a Baron-Ferejohn protocol and investigate the effects of decision rules on delay (number of bargaining rounds needed to reach agreement)...

We experimentally study behavior in a finitely repeated coalition formation game played in real time. Subjects interact in groups of three, bargaining over the distribution of payments which occur at regular time intervals. During a given interval, payments occur if and only if a majority is in...

Erat and Gneezy (2012) conduct an experiment to test whether people avoid lying in a situation where doing so would lead to a Pareto improvement. They conclude that many people exhibit such a "pure lie aversion." I argue that the experiment does not provide a reliable test for such an aversion,...

Experiments can be used to relax technical assumptions that are made by necessity in theoretical analysis, and further test the robustness of theoretical predictions. To illustrate this point we conduct a three-person bargaining experiment examining the effect of different decision rules...

In experiments which measure subjects' beliefs, both beliefs about others' behavior and beliefs about others' beliefs, are often correlated with a subject's own choices. Such phenomena have been interpreted as evidence of a causal relationship between beliefs and behavior. An alternative...

We conduct 3-person bargaining experiments in which the surplus being divided is produced by completing a prior task. Using a Baron-Ferejohn framework, we investigate how differences in contributions to production affect bargaining under different decision rules. Under unanimity rule, all...

Many political systems with direct democracy mechanisms have adopted rules preventing decisions from being made by simple majority rule. The device most commonly added to majority rule in national is a quorum requirement. The two most common are the participation and the approval quora. Such...

We extend the Baron and Ferejohn (1989) model of multilateral bargaining by allowing the players to attempt commiting to a bargaining position prior to negotiating. If successful, commitment binds a player to reject any proposal which allocates to her a share below a self-imposed threshold. Any...

This article shows how to construct a likelihood for a general class of censoring problems. This likelihood is proven to be valid, i.e. its maximiser is consistent and the respective root-n estimator is asymptotically efficient and normally distributed under regularity conditions. The method...