Based on the "acquiring-a-company" game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of...

Based on the "acquiring-a-company" game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of...

Based on the acquiring-a-company game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of...

Credence goods markets suffer from inefficiencies caused by superior information of sellers about the surplus-maximizing quality. While standard theory predicts that equal mark-up prices solve the credence goods problem if customers can verify the quality received, experimental evidence...

Building on Grossman and Stiglitz (1980) and Sunder (1992) we present results from experimental asset markets where subjects endogenously choose between five information levels. Depending on the specific treatment either the costs of information or the maximum number of subjects with each...

We investigate the formation of market prices in a new experimental setting involving multi-period call-auction asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and/or (2)...

We investigate the formation of market prices in a new experimental setting involving multi-period call-auction asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and/or (2)...

We analyze the effects of asymmetric information concerning thesize of a pie on proposer behavior in three different bargaining situations:the ultimatum game, the Yes-No-game and the dictator game.Our data show that (a) irrespective of the information condition, proposergenerosity increases with...

We investigate experimentally whether entry costs have an impact on the evolutionof cooperation in a social dilemma game. In particular, subjects repeatedly playthe so-called takeover game with anonymous partners randomly drawn from a fixedpopulation of participants. The game represents a social...

We analyze the effects of introducing asymmetric information andexpectations in the investment game (Berg et al., 1995). In our experiment,only the trustee knows the size of the surplus. Subjects’expectations about each other’s behavior are also elicited. Our resultsshow that average payback...