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We conducted six treatments of a standard moral hazard experiment with hidden action. All treatments had identical Nash equilibria. However, the behavior in all treatments and periods was inconsistent with established agency theory (Nash equilibrium). In the early periods of the experiment,...
Persistent link: https://www.econbiz.de/10010481417
driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and …
Persistent link: https://www.econbiz.de/10014053130
In a laboratory experiment with 754 participants, we study the canonical one-shot moral hazard problem, comparing treatments with unobservable effort to benchmark treatments with verifiable effort. In our experiment, the players endogenously negotiate contracts. In line with contract theory, the...
Persistent link: https://www.econbiz.de/10014105234
We have used the standard trust game on a random sample of university students (N=764) and a random sample of rural …¨atzle-R¨utzler, & Sutter, 2013) and how these relate to variations in trust and trustworthiness based on the standard trust game (Berg … studies of pro-social, trust, and trustworthiness behavior compared to broader population samples. Contrary to this, we found …
Persistent link: https://www.econbiz.de/10014427519
The "grammar of trust" is one the most explored loci in game theory and behavioural economics. However, still much … needs to be understood about the nature of trust in non-enforceable, personalised interactions, in markets and within … organizations. This experimental study aims at contributing to the understanding of new dimensions of trust by exploring how risky …
Persistent link: https://www.econbiz.de/10011391585
The 'grammar of trust' is one of the most explored loci in behavioural and experimental economics. This experimental … study aims at contributing to the understanding of new dimensions of trust by exploring how risky trust may foster a trustee … of risky trust, which generates more trustworthy and reciprocal behaviour in untrustworthy people. …
Persistent link: https://www.econbiz.de/10011569227
and social norms, and trust. In a preregistered online experiment (n = 1,038), we find that biased institutions reduce … compared to no enforcement. We also find that social heterogeneity lowers average trust and induces ingroup favouritism in … trust. Finally, we find consistent evidence of peer effects: higher levels of peer compliance raise future compliance and …
Persistent link: https://www.econbiz.de/10014321962
and social norms, and trust. In a preregistered online experiment (n = 1,038), we find that biased institutions reduce … compared to no enforcement. We also find that social heterogeneity lowers average trust and induces ingroup favouritism in … trust. Finally, we find consistent evidence of peer effects: higher levels of peer compliance raise future compliance and …
Persistent link: https://www.econbiz.de/10014319160
This paper investigates social preferences in network games, where the network structure determines whose action affects the payoff of which player. We develop alternative theories that incorporate inequality aversion and welfare preference into the context of network games, and test their...
Persistent link: https://www.econbiz.de/10012900760
Persistent link: https://www.econbiz.de/10014291725