A stream of research examining the effect of punishment on conformity indicates that punishment can backfire and lead to suboptimal social outcomes. In such studies, the enforcement of a behavioral rule to cooperate originates from a single party. This feature may raise concern about the...

A stream of research examining the effect of punishment on conformity indicates that punishment can backfire and lead to suboptimal social outcomes. In such studies, the enforcement of a behavioral rule to cooperate originates from a single party. This feature may raise concern about the...

This paper investigates the relationship between firm longevity and rat races in an environment where long-lived firms are operated by overlapping generations of short-lived players. We first present a complete information model in which workers in the young generation are offered employment...

This paper reports the results from a laboratory experiment which investigates the structure of contracts that emerge in overlapping-generation firms where future ownership is a perquisite of employment. Workers in the young generation are offered employment contracts designed by the firms'...

This paper reports the findings of a meta-analysis of 37 papers with 75 results from ultimatum game experiments. We find that on average the proposer offers 40% of the pie to the responder. This share is smaller for larger pie sizes and larger when a strategy method is used or when subjects are...

Purpose – Corruption has traditionally been associated with an absence of pro-social norms such as trust and altruism. This paper challenges this view by examining market corruption – one-shot exchange transactions between strangers in the shadow of the law. The paper aims to propose that in...

We experimentally investigate the effect of imperfect separation of groups on group selection and cooperation in a standard prisoner¿s dilemma environment. Subjects can repeatedly choose between two groups, where in one of them an institutionalized norm fosters cooperation. The degree of...