This paper analyzes the effect of delegation on the employees’ performance in an experimental gift exchange game where employers may allow workers to choose their own wage. Our results show that workers reciprocate positively towards companies that delegate the decision of the wage, obtaining...

This paper studies the e¤ect of social relations on the convergence to the e¢ cient equilibrium in a 2x2 coordination game. We employ a 2x2 factorial design in which we explore two di¤erent games with asymmetric payo¤s and two matching protocols: .friends.versus .strangers.. In the .rst game...

We investigate how donating worker earnings for voluntary extra work, a form of corporate social responsibility, affects worker behavior. In our experiment, participants performed a realeffort task. Subjects were asked to enter real data (from an unrelated experiment) for 60 minutes and were...

This paper explores the role of social integration on altruistic behavior. To this aim, we develop a two-stage experimental protocol based on the classic Dictator Game. In the first stage, we ask a group of 77 undergraduate students in Economics to elicit their social network; in the second...

This paper proposes an original mechanism to elicit latent social networks. Subjects are invited to reveal their friends’ name and surname, together with a score measuring the strength of relationship. According to the mechanism, subjects are rewarded of a fixed price either a) when they do...

We study worker and firm behavior in an environment where worker effort could depend on co-workers? wages. Theoretically, we show that an increase in workers? ?concerns? with coworkers? wages should lead profit-maximizing firms to compress wages under quite general conditions. However, firms...

We study experimentally how the ability to communicate affects the frequency and effectiveness of flexible and inflexible contracts in a bilateral trade context where sellers can adjust trade quality after observing a post-contractual cost shock and a discretionary buyer transfer. In the absence...

We investigate risk sharing without commitment by designing an experiment to match a simple model of voluntary insurance between two agents when aggregate income is constant. Participants are matched in pairs. Each period, they receive their income with or without a random component h that one...

In experiments with two-person sequential games we analyze whether responses to favorable and unfavorable actions depend on the elicitation procedure. In our “hot†treatment the second player responds to the first player's observed action while in our “cold†treatment we...

We perform an experimental test of Maskin's canonical mechanism for Nash implementation, using 3 subjects in non-repeated groups, as well as 3 outcomes, states of nature, and integer choices. We find that this mechanism succesfully implements the desired outcome a large majority of the time and...