We investigate how cooperation is possible among self-interested individuals in an n-person prisoners' dilemma from the viewpoint of institutional arrangements. Assuming that individuals create by their free consent an institutional order to enforce an agreement of cooperation, we present a...

In this paper we investigate experimentally the economic functioning of a wage tax system for financing unemployment benefits in an international economy, in particular in reaction to budget deficits and tax adjustment. Our results support the hypothesis that due to out-of-equilibrium price...