Indirect reciprocity is cooperation through reputation: third parties cooperate with those known to cooperate and defect against those known to defect. Defection, then, can have the unjust motive of greed or the just motive of retaliation. To establish cooperation, observers should distinguish...

Trust is vital yet vulnerable in economic exchange relations. In these relations, a widely used strategy in response to distributive harm consists of having the transgressor pay a financial compensation to the victim. This research examines whether financial compensations can increase trust...

The present research examines whether or not endowment asymmetry leads those with many endowments to contribute more than those with few endowments towards the public good (i.e., a first-order dilemma), but also towards the implementation of a sanctioning system (i.e., a second-order dilemma)....

Prior studies of the effect of group identification on cooperation in social dilemmas have advanced two competing accounts of this effect, the goal-transformation hypothesis, which holds that identification implies a sense of collective self, which makes personal and collective goals...

We examine the behavioral consequences of experienced regret on subsequent choice. Previous experimental research findings suggest that the impact of experienced regret on repeating subsequent choice is mediated by the anticipation of experiencing regret again. We argue that this impact is due...

Research has identified loss aversion as a strong and robust phenomenon, but has also revealed some moderators affecting the magnitude of its effect on decision making. In the current article, we draw attention to the fact that even the measurement of loss aversion itself may affect its...

In two experiments we investigated the relation between power and deception in ultimatum bargaining. Results showed that recipients of an ultimatum used deception to obtain better offers and that more recipients did so in a low power position. Further analyses showed that the recipient's use of...

The sunk cost fallacy is the tendency to continue an endeavour once an investment in money, effort, or time has been made. We studied how people's chronic orientation to cope with failing projects (i.e., action vs. state orientation) influences the occurrence of this sunk cost effect. We found...