We investigate a private value auction in which a single “entrant” on winning imposes a negative externality on two “regular” bidders. In an English auction when all bidders are active, “regular” bidders free ride, exiting before price reaches their values. In a first-price...

Motivated by problems of coordination failure in organizations, we examine how overcoming coordination failure and maintaining coordination depend on the ability of individuals to observe others’ choices. Subjects’ payoffs depend on coordinating at high effort levels in a weak-link...

Recent studies suggest that payoffs in cents, compared to dollars, produce less defection in a repeated prisoner’s dilemma game. We are unable to replicate these findings with conventional economic procedures or in a direct replication.