A firm with stochastic demand can rely on hired hands when demand is low and rent additionallabour when demand is higher. For high demand this implies the co-employmentof hired hands, paid directly by the firm, and of rented hands who are paid by a rentalagency. This may cause severe problems if...

In an experimental setting, firms in a duopoly market engage in a patent tournamentand compete for profit-enhancing product advancements. The firms generateincome by matching exogenously defined demand preferences with an appropriatelycomposed product portfolio of their own. Demand preferences...

This study investigates the dynamic efficiency of an emissionregulation regime where companies competitively pay for emissionlicences. We embed the emission licence market in a Cournotmodel where the price of emission licences is subject to strategictradeoff between licences and abatement...

We analyse two team settings in which one member in a team has stronger incentives to contribute than the others. If contributions constitute a sacrifice for the strong player, the other team members are more inclined to cooperate than if contributions are strictly dominant for the strong player.

We analyse two team settings in which one member in a team has stronger incentives to contribute than the others. If contributions constitute a sacrifice for the strong player, the other team members are more inclined to cooperate than if contributions are strictly dominant for the strong player.

We experimentally show that current models of reciprocity are incomplete in a systematic way using a new variant of the ultimatum game that provides second-movers with a marginal-cost-free punishment option. For a substantial proportion of the population, the degree of first-mover unkindness...

We present a test of the two most established reciprocity models, an intention factor model and a reference value model. We test characteristic elements of each model in a series of twelve mini-ultimatum games. Results from online experiments show major differences between actual behavior and...