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experiment, where principals set wages and agents respond by choosing effort levels. In addition to the efforts the principals …
Persistent link: https://www.econbiz.de/10010261601
This paper studies the effect of endogenous group formation on the outcome in two types of coordination games with multiple Pareto-ranked equilibria. Endogenous group formation means that in each period players are free to choose among two or more groups within which they want to play the...
Persistent link: https://www.econbiz.de/10010267615
inefficiencies, such as under- and overtreatment or market break-down. We study in a large experiment with 936 participants the … determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields …
Persistent link: https://www.econbiz.de/10010271236
Existing research supports two opposing mechanisms through which positive mood might affect cooperation. Some studies have suggested that positive mood produces more altruistic, open and helpful behavior, fostering cooperation. However, there is contrasting research supporting the idea that...
Persistent link: https://www.econbiz.de/10011786980
We aim to understand the role and evolution of beliefs in the indefinitely repeated prisoner's dilemma (IRPD). To do so, we elicit beliefs about the supergame strategies chosen by others. We find that heterogeneity in beliefs and changes in beliefs with experience are central to understanding...
Persistent link: https://www.econbiz.de/10013426341
We investigate whether a player's guilt aversion is modulated by the co-players' vulnerability. To this goal, we introduce new variations of a three-player Trust game in which we manipulate payoff vulnerability and endowment vulnerability. The former is the traditional vulnerability which arises...
Persistent link: https://www.econbiz.de/10014296704
We investigate experimentally the effects of information about native/immigrant identity, and the ability to communicate a self-chosen personal characteristic towards the rival on conflict behavior. In a two-player individual contest with British and Immigrant subjects in the UK we find that...
Persistent link: https://www.econbiz.de/10014296764
learn the abilities of agents. Theory suggests high first-period equilibrium effort in the hidden ability treatment but no …
Persistent link: https://www.econbiz.de/10010261580
behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm … one of the key insights from theory: effort and sabotage increase with the wage spread. Additionally, we find that even in …
Persistent link: https://www.econbiz.de/10010268946
customers. While standard theory predicts that inefficiencies disappear if customers can verify the quality received … as the main cause and design a parsimonious experiment with exogenous prices that allows classifying experts as either …
Persistent link: https://www.econbiz.de/10010269558