This is the first study investigating the development of the capability to reason backwards in children, adolescents, and young adults aged 6 to 23 under controlled laboratory conditions. The experimental design employs a modified version of the race game. As in the original game, subjects need...

The dynamics of behavior observed in standard public-good experiments can be explained by imperfect conditional cooperation combined with social learning (Fischbacher and Gächter, 2010). But it is unclear what determines first-round contributions. We argue that first-round contributions depend...

We study higher-order risk preferences, i.e. prudence and temperance, next to risk aversion in social settings. Previous experimental studies have shown that higher-order risk preferences affect the choices of individuals deciding privately on lotteries that only affect their own pay-off. Yet,...

We study behavior in the race game with the aim of assessing whether teams can create synergies. The race game has the advantage that the optimal strategy depends neither on beliefs about other players nor on distributional or efficiency concerns. Our results reveal that teams not only...

This paper studies communication and reputation in market interactions using data from online procurement auctions. Positive reputation ratings and engaging in communication increase a bidder’s probability of winning. Messages are primarily used to reduce the asymmetric information associated...

Aggregate behavior in two-player hide-and-seek games deviates systematically from the mixed-strategy equilibrium prediction of assigning all actions equal probabilities (Rubinstein and Tversky, 1993, Rubinstein et al., 1996, Rubinstein, 1999). As Crawford and Iriberri (2007) point out, this...

We investigate learning and the development of the capability to backward induct in children and young adults aged 6 to 23 under controlled laboratory conditions. The experimental design employs a modified version of the race game. As in the original game (see Burks et al., 2009, Dufwenberg et...

This paper provides a critical re-examination of Rubinstein's survey (Rubinstein; Economic Journal 2006), in which he questions the way economics is taught. The observations obtained in our new survey cast some doubts on the original findings, and, in particular, question Rubinstein's conjecture...

We use modified dictator games in which the productivity of taking or giving is varied. Subjects have to decide which of the different games will be payoff relevant in the end. We can show that the behavior of dictators does not depend on the productivity of their gifts, but that their behavior...

This paper provides a critical re-examination of Rubinstein’s survey in which he questions the way of teaching economics. The observations obtained in our new survey cast some doubts on the original findings, and in particular, question Rubinstein’s conjecture that our students’ views on...