Understanding the roots of human cooperation among strangers is of great importance for solving pressing social dilemmas and maintening public goods in human societies. We study the development of cooperation in 929 young children, aged 3 to 6. In a unified experimental framework, we examine...

In division problems with entitlements, we investigate whether fairness concerns overrule strategic behavior and inhibit full use of the decision-making power. In a lab experiment where entitlements are derived from costly contributions, we vary bargaining power by using either the majority rule...

Incentivized experiments in which individuals receive monetary rewards according to the outcomes of their decisions are regarded as the gold standard for preference elicitation in experimental economics. These task-related real payments are considered necessary to reveal subjects' "true...

Large, macroeconomic shocks in the past have been shown to influence economic decisions in the present. We study in an experiment with 743 subjects whether small-scale, seemingly negligible, events also affect the formation of risk preferences. In line with a reinforcement learning model, we...

While headline news frequently report cases of large-scale fraud, corruption, and other immoral behavior, laboratory experiments often show prosocial behavior in strategic games. To reconcile and explain these seemingly conflicting observations, Al'os-Ferrer et al. (2022) introduced the Big...

In hierarchical organizations the role of a team leader often requires making decisions which do not necessarily coincide with the majority opinion of the team. However, these decisions are final and binding for all team members. We study experimentally why, and under which conditions, leaders...

By running a battery of incentivized and non-incentivized experiments with fund managers from four countries in the European Union, we investigate the impact of fund managers' cognitive skills and economic preferences on the dynamics of the mutual funds they manage. First, we find that fund...

Risk-taking may depend on whether risks result from an action (active risk-taking) or from not taking action (passive risk-taking). We develop a new experimental risk-elicitation procedure, the Dynamic Lottery Adjustment Task, and employ it across two separate experiments to study the size and...

Time preferences drive decisions in many economic situations, such as investment contexts or salary negotiations. These situations are characterized by a very short time frame for decision making. Preferences are potentially susceptible to the confounding effects of time pressure, as proposed by...

Intentions play a fundamental role in many situations characterized by nonsimultaneous interaction from principal-agent settings in firms to the international task of protecting the environment and the climate. We experimentally investigate how decision makers (DMs) respond to perceived...