A price-setting experiment was conducted to investigate whether a proposed governmental subsidy system to reduce sales and production of environmentally harmful products would maintain competition, as required by EU regulations. Dyads of participants played the role of producers, independently...

An ongoing discussion concerns road-pricing schemes as measures to abate traffic congestion and air pollution in metropolitan areas. If such measures are to be effective, road-pricing fees must be set sufficiently high. However, municipalities are likely to have other goals besides reducing car...