In the Solidarity Game (Selten and Ockenfels, 1998), two "rich" persons can support a "poor" one. A strong positive correlation between one rich person's solidarity contribution and his expected contribution of the other is observed. This paper investigates the causality behind this correlation....

In the Solidarity Game (Selten and Ockenfels, 1998), two "rich" persons can support a "poor" one. A strong positive correlation between one rich person's solidarity contribution and his expected contribution of the other is observed. This paper investigates the causality behind this correlation....

In German mobile phone contracts, calls in the provider's home net are usually less expensive than external calls (to the network of a competitor). Thus customers have to compare vectors of prices, and such a comparison can be the source of a fallacy in the presence of network externalities....

In German mobile phone contracts, calls in the provider's home net are usually less expensive than external calls (to the network of a competitor). Thus customers have to compare vectors of prices, and such a comparison can be the source of a fallacy in the presence of network externalities....

Social insurance such as unemployment insurance is in many countries mandatory for the majority of workers. The extent of such insurance is determined by a political process, i.e. ultimately by the workers themselves. If unemployment were purely accidental then all risk averse workers should...

Based on two models of interdependent utilities [Becker, G., 1974. A theory of social interaction, Journal of Political Economy 82, 1064-1093; Fehr, E., Schmidt, K., 1999. A theory of fairness, competition, and cooperation, Quarterly Journal of Economics 114, 817-868] we derive a functional...