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Persistent link: https://www.econbiz.de/10005408951
Many previous experiments document that behavior in multi-person settings responds to the name of the game and the labeling of strategies. With a few exceptions, these studies cannot tell whether frames affect preferences or beliefs. In three large experiments, we investigate whether social...
Persistent link: https://www.econbiz.de/10010866225
In an otherwise neutrally described Prisonersʼ dilemma experiment, we document that behavior is more likely to be cooperative when the game is called the Community Game than when it is called the Stock Market Game. However, the difference vanishes when only one of the subjects is in control of...
Persistent link: https://www.econbiz.de/10011049843
We develop a simple model of generous behavior. It is based on the premise that some people are generous, but everyone wants to appear generous—especially in the eyes of other generous people. Although non-monetary donations are always inefficient, they frequently occur in equilibrium because...
Persistent link: https://www.econbiz.de/10011056145
Persistent link: https://www.econbiz.de/10006019446
We experimentally investigate the effect of cheap talk in a bargaining game with one-sided asymmetric information. A seller has private information about her skill and is provided an opportunity to communicate this information to a buyer through a written message. Four different treatments are...
Persistent link: https://www.econbiz.de/10005005839
We present experimental evidence that promises and threats mitigate the hold-up problem. While investors rely as much on their own threats as on their trading partner's promises, the latter are more credible. Building on recent work in psychology and behavioural economics, we then present a...
Persistent link: https://www.econbiz.de/10005071853
Many people are sensitive to social esteem, and their pride is a source of pro--social behavior. We present a game-theoretic model in which sensitivity to esteem varies across players and may depend on context as well players' beliefs about their opponents. For example, the pride associated with...
Persistent link: https://www.econbiz.de/10005662241
Desire for social esteem is a source of prosocial behavior. We develop a model in which actors' utility of esteem depends on the audience. In a principal agent setting, we show that the model can account for motivational crowding out. Control systems and pecuniary incentives erode morale by...
Persistent link: https://www.econbiz.de/10005757464
Why do people work? Economic theory generally, and the principal-agent model specifically, emphasize the role of material incentives. But many academics, for example, work diligently year after year for a nearly fixed real salary, continuing to work hard as they approach retirement, although...
Persistent link: https://www.econbiz.de/10005560747