In a laboratory-controlled environment we provide experimental evidence on the effects of transparency (complete rather than incomplete information) and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent). We implement a simple two-person...

This chapter discusses that redistributing resource endowments from people who contribute to public goods to other people who contribute to public goods will have no effect on the aggregate contributions to public goods. However, redistribution from non-contributors to contributors will result...

Emissions trading refer to the exchange of permits conveying the legal right to discharge specified quantities of waste. Unlike naturally occurring markets for many commodities and services, emissions trading markets are the product of deliberate choices by regulatory authorities. Frequently...