In this paper we investigate the effects of local interaction in a CPR-like environment.We employ a local interaction model where subjects are allocated alonga circle and only interact with their most direct neighbors. In traditional socialdilemma experiments, the return of one’s actions is...

Books reviewed: Ulf Beckmann, Von Lowe bis Leontief Friedel Bolle and Michael Carlberg (eds.), Behavioral Economics Paul Dalziel, Money, Credit and Price Stability Vivien Foster, Susana Mourato, David Pearce and Ece Ozdemiroglu, The Price of Virtue Joshua Gans (ed.), Publishing Economics Otmar...

We examine in an experiment the causes, consequences and possible cures ofmyopic loss aversion (MLA) for investment behaviour under risk. We find thatboth, investment horizons and feedback frequency contribute almost equally tothe effects of MLA. Longer investment horizons and less frequent...