The aim of this investigation is to display how the use of classroom experiments may be a good pedagogical tool to teach the Nash equilibrium (NE) concept. The basic game for our purposes is a repeated version of the Beauty Contest Game (BCG), a simple guessing game whose repetition lets...

Measuring risk preferences in the field is critical for policy, however, it can be costly. For instance, the commonly used measure of Holt and Laury (2002) relies on a dozen lottery choices and payments which makes it time-consuming and costly. We propose a short version of the Holt and Laury...

Children as young as 3-4 years old are already concerned about inequality and declare that equality is a norm that should be followed.1 At the age of 3 to 8, they develop a strong preference for equality, which is typically reflected in both “envy” and “compassion”,2,3 that is, aversion...

There is an intense debate whether risk-taking behavior is partially driven by cognitive abilities. The critical issue is whether choices arising from subjects with lower cognitive abilities are more likely driven by errors or lack of understanding than pure preferences for risk. The latter...

Humans often punish non-cooperators in one-shot interactions among genetically-unrelated individuals. This so-called altruistic punishment poses an evolutionary puzzle because it enforces cooperation norms that benefit the whole group, but is costly for the punisher. Under the “big mistake”...

Using a powered (774 subjects, 54% female, av. age = 24.27) and preregistered online experiment under the die-under-the-cup paradigm, this paper shows that reversing payoffs increases participants’ honesty. In the control treatment dice numbers and monetary prizes are aligned (1→5€,...