This paper reports results of an experiment design ed to investigate the nature of cooperation and punishment. Subjects are matched in a series of two-person, two-stage games with a sequential equilibrium that supports first-stage cooperation with a credible threat of subsequent punishment....

This chapter focuses on the information cascade experiments. The concept of an information cascade can be explained in the context of a specific numerical example that was used in initial laboratory experiments. The predictions are publicly announced as they are made, but individuals are not...