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We report the results of an experiment that examines play in a 50 periods repetition of a two-player coordination game (Stag Hunt game), which admits two pure strategy Nash equilibria that are Pareto-ranked : a payoff-dominant equilibrium and a risk-dominant equilibrium. We consider a 2x3...
Persistent link: https://www.econbiz.de/10011020440
This paper investigates market failures due to strategic delays. We test experimentally a discrete model of dynamic investment, where two privately informed agents have an option to invest at the time of their choice in the presence of waiting costs. The equilibrium outcome of our experimental...
Persistent link: https://www.econbiz.de/10005252205
Our objective in this paper is to assess the acceptability of the ambient tax. Concretely, we ask subjects to choose between (A) an ambient tax and (B) an individual tax system. In case (A), they actually participate in a game in which their payoff depends on all participants' decisions and on...
Persistent link: https://www.econbiz.de/10005090579
We investigate the ability of the damage based tax mechanism to induce socially optimal outcomes in a controlled laboratory environment which incorporates important aspects of nonpoint pollution problems. Our experimental setting combines a strictly convex damage function with uncertainty in...
Persistent link: https://www.econbiz.de/10005866677
This paper investigates market failures due to strategic delays. We test experimentally a discrete model of dynamic investment, where two privately informed agents have an option to invest at the time of their choice in the presence of waiting costs. The equilibrium outcome of ourexperimental...
Persistent link: https://www.econbiz.de/10005866694
Our objective in this paper is to assess the acceptability of the ambient tax. Concretely, we ask subjects to choose between (A) an ambient tax and (B) an individual tax system. In case (A), they actually participate in a game in which their payo depends on all participants' decisions and on...
Persistent link: https://www.econbiz.de/10010265675
Persistent link: https://www.econbiz.de/10014550835
This paper experimentally investigates the interdependence between market competition and endogenously emerging inter-firm collaboration. We restrict attention to arrangements resulting from bilateral collaboration agreements that typically characterize real world applications in which the...
Persistent link: https://www.econbiz.de/10005866674
The employment relationship is characterized by incomplete contracts. Labor contracts often take the form of a fixed wage without explicit performance incentives meaning that workers have a large degree of discretion over effort levels. As a consequence, an employee’s general jobattitude...
Persistent link: https://www.econbiz.de/10005866697
We consider a modi¯ed pure public good game characterized by a pre-play negotiation stage, onwhich pairs of players can form binding cooperation commitments. As the introduced mecha-nism only supports pairwise rather than more inclusive commitments, it does not implement thee±cient outcome. We...
Persistent link: https://www.econbiz.de/10005866705