Pay What You Want (PWYW) can be an attractive marketing strategy to price discriminate between fair-minded and selfish customers, to fully penetrate a market without giving away the product for free, and to undercut competitors that use posted prices. We report on laboratory experiments that...

One of the most important determinants of success for large-scale privatization programmes is the long-term commitment of the government to refrain from discretionary interventions that lead to an ex-post expropriation of the returns of the industry. However, future governments may want to...

Economic experiments interact with economic theories in various ways. First of all they are used to test economic theories. However, they can neither confirm nor falsify them in a strict sense. They rather inform us about the range of applicability, the robustness and the predictive power of a...

Der Wissenschaftliche Beirat beim Bundesministerium für Wirtschaft und Klimaschutz hat in seiner 500. Sitzung im April 2022 ein internes Symposium zu Nachhaltigkeitszielen in der Wirtschaftspolitik durchgeführt, um verschiedene Aspekte dieser Thematik zu vertiefen. Gerade im Zusammenhang mit...

Loss aversion postulates that people prefer avoiding losses over acquiring gains of equal size. It is a central part of prospect theory and, according to Daniel Kahneman, "the most significant contribution of psychology to behavioral economics" (Kahneman, 2011, p. 300). It has powerful...

The public acceptability of a carbon price depends on how the revenues from carbon pricing are used. In a fully incentivised experiment with a large representative sample of the German population, we compare five different revenue recycling schemes and show that support for a carbon price is...

Loss aversion postulates that people prefer avoiding losses over acquiring gains of equal size. It is a central part of prospect theory and, according to Daniel Kahneman, “the most significant contribution of psychology to behavioral economics” (Kahneman, 2011, p. 300). It has powerful...

In this paper we investigate the pricing incentives of IP holders and compare the equilibrium royalty rates charged by vertically integrated IP holders with those of non-integrated IP holders. We show that under many circumstances non-integrated companies are likely to charge lower royalties...