Sick pay is a common provision in most labor contracts. This paperemploys an experimental gift-exchange environment to explore two relatedquestions using both managers and undergraduates as subjects.First, do workers reciprocate generous sick pay with higher effort? Second,do firms benefit from...

Least-Unmatched Price Auctions have become a popular format of TV and radio shows. Increasingly,they are also applied in internet trading. In these auctions the lowest single (unique)bid wins. We analyze the game-theoretic solution of least unmatched price auctions when prize,bidding cost and...

Negotiations frequently end in conflict after one party rejects a final offer.In a large-scale internet experiment, we investigate whether a 24-hour coolingoffperiod leads to fewer rejections in ultimatum bargaining. We conduct astandard cash treatment and a lottery treatment, where subjects...

We introduce a generalized theoretical approach to study imitation andsubject it to rigorous experimental testing. In our theoretical analysiswe …nd that the different predictions of previous imitation models aredue to different informational assumptions, not to different behavioralrules. It is...