We study the effect of different school choice mechanisms on schools' incentives for quality improvement. To do so, we introduce the following criterion: A mechanism respects improvements of school quality if each school becomes weakly better whenever that school improves and thereby becomes...

We consider the many-to-many two-sided matching problem under a stringent domain restriction on preferences called the max-min criterion. We show that, even under this restriction, there is no stable mechanism that is weakly Pareto efficient, strategy-proof, or monotonic (i.e. respects...

We study the effect of different school choice mechanisms on schools' incentives for quality improvement. To do so, we introduce the following criterion: A mechanism respects improvements of school quality if each school becomes weakly better whenever that school improves and thereby becomes...

We study the effect of different school choice mechanisms on schools' incentives for quality improvement. To do so, we introduce the following criterion: A mechanism respects improvements of school quality if each school becomes weakly better off whenever that school becomes more preferred by...

Antitrust authorities in many countries have been trying to establish appropriate competition policies based on economic analysis. Recently an anti-cartel policy called a "leniency program" has been introduced in many countries as an effective policy to dissolve cartels. In this paper, we...

We examine a dictator game with a "voice" option in the laboratory. In our experiment, the recipient has an opportunity to state a payoff-irrelevant request for the minimum acceptable offer before the dictator dictates his/her offer. In this game, it is predicted not only by the standard game...

We examine a dictator game with a "voice" option in the laboratory. In the dictator game, player 1 dictates how to divide a pie, and player 2 simply receives his/her share, i.e., unlike in an ultimatum game, he/she does not have an option to reject this division. In our experiment, player 2 has...

As one of the best-known examples of the paradox of backward induction, centipede games have prompted a host of studies with various approaches and explanations (McKelvey and Palfrey, 1992; Fey et al., 1996; Nagel and Tang, 1998; Rapoport et al., 2003; Palacios-Huerta and Volij, 2009). Focusing on initial plays...

In the theoretical assumption of informational cascades, private signals and predecessors' actions are equivalently informative before informational cascades, but are not once informational cascades have started. This experimental study tests this assumption by measuring the informativeness of...

We present the experimental results of cheap-talk games with private information. We systematically compare various equilibrium refinement theories and bounded rationality models such as level-k analysis in explaining our experimental data. As in the previous literature, we find that when...