In repeated public good experiments, reciprocity helps to sustain high levels of cooperation. Can this be achieved by location choices in addition to making contributions? It is more realistic to rely on an intuitive neighborhood model for community members who interact repeatedly. In our...

For games of simultaneous action selection and network formation, game-theoretic behavior and experimental observations are not in line: While theory typically predicts inefficient outcomes for (anti-)coordination games, experiments show that subjects tend to play efficient (non Nash) strategy...

Complexity of strategies is central for human decision making and attracted interest of different game theorists in the recent years. Nevertheless, behavioral economists have neglected the importance of complexity in their analyses. In this paper, we analyze network formation and action...

Bounded rationality questions backward induction, which however, does not exclude such reasoning when anticipation is easy. In our stochastic (alternating offer) bargaining experiment, there is a certain first-period pie and a known finite deadline. What is uncertain (except for the final...

Bounded rationality questions backward induction, which however, does not exclude such reasoning when anticipation is easy. In our stochastic (alternating offer) bargaining experiment, there is a certain first-period pie and a known finite deadline. What is uncertain (except for the final...

Bounded rationality questions backward induction without necessarily excluding such reasoning when anticipation is easy. In our stochastic (alternating offer) bargaining experiment, there is a certain first-period pie and a known finite deadline. What is uncertain (except for the final period)...

In repeated Public Good Games contributions might be influenced by different motives. The variety of motives for deciding between (more or less) free-riding probably explains the seemingly endless tradition of theoretical and experimental studies of repeated Public Good Games. To more clearly...

This paper focuses on the uneasy alliance of rational choice and evolutionary explanations in modern economics. While direct evolutionary explanations rule out "purposeful" rational choice by assuming "zero-intelligence" and pure rational choice explanations leave no room for "selective"...

Approximate truth refers to the principle that border cases should be analyzed by solving generic cases and solving border cases as limits of generic ones (Brennan et al., 2008). Our study experimentally explores whether this conceptual principle is also behaviorally appealing. To do so, we...

We present an experiment where two players bargain with a third player. They can bargain either separately or form a joint venture to bargain collectively. Our theoretical benchmark solution predicts decentralized bargaining, as only one player has an interest in forming a joint venture....