We conduct an experiment to test standard theoretical predictions concerning switching behavior in a rebate and a discount scheme. Beyond theoretical expectations we find that rebate and discount schemes exert a significant attraction that enhances the potentially exclusionary effect of the...

Broken Windows: the metaphor has changed New York and Los Angeles. Yet it is far from undisputed whether the broken windows policy was causal for reducing crime. In a series of lab experiments we show that first impressions are indeed causal for cooperativeness in three different institutional...

Both social psychology and experimental economics empirically investigate social dilemmas. However, these two disciplines sometimes use different notions for very similar scenarios. While it is irrelevant for economists whether an experimental public-good game is conceptualised as a take-some or...

Simon's (1955) famous paper was one of the first to cast doubt on the validity of rational choice theory; it has been supplemented by many more papers in the last three and a half decades. Nevertheless, rational choice theory plays a crucial role in classical and neoclassical economic theory,...

Common research on decision-making investigates non-interdependent situations, i.e., quot;games against naturequot;. However, humans are social beings and many decisions are made in social settings, where they mutually influence each other, i.e., quot;strategic gamesquot;. Mathematical game...