This paper experimentally investigates investment behavior. We find that global risk – i.e. risk independent of an agent’s investment decision (like political risk) – substantially decreases investment. Also effort to obtain the capital used for investment decreases investment...

Although reciprocity is a key concept in the social sciences, it is still unclear why people engage in costly reciprocation. In this study, physiological and self-report measures were employed to investigate the role of emotions, using the Power-to-Take Game. In this 2-person game, player 1 can...

In the reported experiment different payment schemes are examined on their incentive effects. Payment based on individual, team and relative performance are compared. Subjects conducted computerized tasks that required substantial effort. The results show that individual and team payment induced...

Interest groups are introduced in a spatial model of electoral competition between two political parties. We show that the presence of these interest groups increases the winning set, which is the set of policy platforms for the challenger that will defeat the incumbent. Therefore interest...

Although reciprocity is a key concept in the social sciences, it is still unclear why people engage in costly reciprocation. In this study, physiological and self-report measures were employed to investigate the role of emotions, using the Power-to-Take Game. In this 2-person game, player 1 can...

This discussion paper led to a publication in <A href="http://www.sciencedirect.com/science/article/pii/S0014292111000912">'European Economic Review'</A>, 56(2) 216-32.<P>This paper is concerned with a policy oriented macroeconomic experiment involving an 'international' economy with a relatively small 'home' country and a large 'foreign' country. It compares the economic...</p></a>

In the reported experiment different payment schemes are examined on theirincentive effects. Payment based on individual, team and relative performance are compared. Subjects conducted computerized tasks that required substantial effort. The results show that individual and team payment induced...

This discussion paper led to a publication in <A href="http://www.sciencedirect.com/science/article/pii/S0165489610000569">'Mathematical Social Sciences'</A> 60(3), 210-16.<P>Interest groups are introduced in a spatial model of electoral competition between two political parties. We show that, by coordinating voting behavior,these interest groups increase the winning set, which...</p></a>

This discussion paper has resulted in a publication in the <A href="http://www.sciencedirect.com/science/article/pii/S0167487011001048">'Journal of Economic Psychology'</A> 32(6) 918-39.<P>This experimental study is concerned with the impact of the timing of the resolution of risk onpeople's willingness to take risks, with a special focus on the role of affect. While the...</p></a>

This discussion paper resulted in a publication in the <A href="http://www.sciencedirect.com/science/article/pii/S0167268113003041">'Journal of Economic Behavior & Organization'</A>, 2014, 98, 29-40.<P> We analyze one of the explanations why people participate in lotteries. Our hypothesis stipulates that part of the value that a unit of money buys in lotteries is consumed...</p></a>