While experimental research on social dilemmas focuses on the distribution of gains, this paper analyzes social preferences in the case of losses. In this experimental study, participants share a loss in a Nash bargaining game. Instead of monetary losses, we use waiting time as an incentive. We...

The Reduction of compound lotteries is an implicit assumption both in the statement of the St. Petersburg Paradox as well as in its resolution by Expected Utility (EU). Yet despite the pivotal role of this assumption, to date there has been no empirical substantiation of its validity. Here we...

We analyze how the redistribution of tax revenues influences tax compliance behavior by applying different reward mechanisms. In our experiment, subjects have to make two decisions. In the first stage, subjects decide on the contribution to a public good. In the second stage, subjects declare...