This paper examines the issue of skilled–unskilled wage inequality in the shortrun when varieties of producer services are traded. It is shown that, irrespective of the relative size of income share of capital, inflow of neither skilled nor unskilled labour affects skilled–unskilled wage...

In a trust game experiment, we elicited choices using either the so-called game or strategy method. While the two methods yield similar rates of trust, the strategy method reveals a significantly lower rate of trustworthiness.

Survey data show that subjects positively discount both gains and losses but discount gains more heavily than losses. This holds for monetary and non-monetary outcomes. These results do not confirm the findings of two earlier studies about negative time preferences for non-monetary outcomes.

In an experiment, a group of strangers was randomly divided in pairs to play a prisoners’ dilemma; this process was indefinitely repeated. Cooperation did not increase when subjects could send public messages amounting to binding promises of future play.