We experimentally study the profitability of pricing mechanisms that allow customers to quote their own prices, such as Priceline.com's Name-Your-Own-Price (NYOP). Presumably firms find this sales method profit-maximizing despite the concerns that NYOP web-sites can cannibalize profit from...

This paper presents an experiment investigating what cultural and institutional factors underlying a society might render its members more or less tolerant of inequality in favor of greater efficiency. The specific institutional factors we address concern the fairness in the procedures or...