We report an experiment on the effect of intergroup competition on group coordination in the minimal-effort game (Van Huyck et al., 1990). The competition was between two 7-person groups. Each player in each group independently chose an integer from 1 to 7. The group with the higher minimum won...

This study uses an experimental approach to examine whether markets are sensitive to the internal incentive structure of the competitors. Toward this goal, we modeled the competitors in a price competition duopoly game as three-player teams. Each player simultaneously declares a bid (price) and...

Werner Güth's ultimatum game played a key role in the development of multiple research areas, several of which are highlighted.

A potential source of instability of many economic models is that agents have little incentive to stick with the equilibrium. We show experimentally that this may matter with price competition. The control variable is a price floor, which increases the cost of deviating from equilibrium....

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...

Two types of intergroup conflicts modeled as team games, a game of assurance where the groups' incentive to compete is purely fear and a game of chicken where the groups' incentive to compete is purely greed, are examined. The games involved competition between two 3-person groups. The players...

Repeated interaction in integroup conflict was studied in the context of two team games: the intergroup public goods (IPG) game and the intergroup prisoner's dilemma (IPD) game. The results reveal (a) a main effect for game type; subjects were twice as likely to contribute toward their group...

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...