While classical exchange theorists excluded bargaining from the scope of their theories, most contemporary theorists have done the opposite, concentrating exclusively on negotiated exchanges with binding agreements. This chapter describes the theoretical logic and empirical results of a new...

Posted offer markets with costly buyer search are investigated in 18 laboratory sessions. Each period sellers simultaneously post prices. Then each buyer costlessly observes one or two of the posted prices and either accepts an observed price, drops out, or pays a cost to search again that...

This chapter argues that reciprocity provides a key to understanding corrupt behavior and its limitations. It allows for an understanding why agents not only are guided by explicit incentives but also serve those to whom they owe gratitude. It allows to observe how citizens disregard their...

"This Encyclopedia presents a comprehensive account of the complementary forces of behavioural economics, a novel field combining psychological insights with analytical economic thinking and experimental economics. Addressing key topics and pioneering research in the field, entries are written...

We investigate how group identity affects belief updating about moral norms. Using a Belief Updating task, we found that individuals follow a cautious version of Bayesian updating. Group identity itself does not directly affect belief updating. However, when given an information signal about the...