The gift-exchange game is a form of sequential prisoner's dilemma, developed by Fehr, Kirchsteiger, and Riedl (1993), and popularized in a series of papers by Ernst Fehr and co-authors. While the European studies typically feature a high degree of gift exchange, the few U.S. studies provide some...

A basic tenet in elementary microeconomics is tax incidence equivalence. This tenet holds that the burden of a unit tax on buyers and sellers is independent of who actually pays the tax. By contrast, policymakers and the public often mistake statutory incidence for economic incidence. Recent...

This paper reports the results of a meta-analysis of 32 papers with results from ultimatum game experiments. We find that on average the proposer offers 40% of the pie to the responder. This share is independent of the size of the pie and of the use of the strategy method. On average 16% of the...

The consumer Internet of Things (IoT) has the potential to revolutionize consumer experience. Because consumers can actively interact with smart objects, the traditional, human-centric conceptualization of consumer experience as consumers’ internal subjective responses to branded objects may...

"Winner-Take-All"-markets, i.e. markets in which the relative and not the absolute performance is decisive, have gained in importance. Such markets have a tendency to provoke inefficiently many entries. We investigate the functioning of such markets with the help of experiments and show that...