There is an odd contradiction about much of the empirical (experimental) literature: The data is analysed using statistical tools which presuppose that there is some noise or randomness in the data, but the source and possible nature of the noise are rarely explicitly discussed. This paper...

In many experiments, particularly individual choice experiments, experimenters ask many questions to the subjects and use the random lottery incentive mechanism to give an incentive to the subjects. That is, the experimenter, at the end of the experiment, picks just one of the questions, plays...

Countless experimental studies have shown that markets converge quickly and efficiently to the competitive outcome under many trading institutions, particularly the double auction mechanism. This creates difficulties for Keynesian stories of unemployment creation—which suggest a...

Jekyll and Hyde were in fact two people inside the same person - an obviously dynamically-inconsistent person. In the book and in the movie, the dynamic inconsistency was resolved in a rather dramatic way. We investigate its resolution in the laboratory.

We offer a translation into English of the original French version published in 1777 of Buffon’s Essai d’Arithmetique Morale along with some introductory remarks. In this classic work, Buffon discusses degrees of certainty, probability, the moral value of money, the different evaluations of...

This paper provides a very simple experimental test of a prediction of Nash Bargaining Theory that seems counterintuitive. The context is a simple bargaining problem between two players who have to agree a choice from three alternatives. One alternative favors one player and a second favors the...

There are two basic ways of assessing the goodness of fit of theories to data - one based on stochastic theory (for example, the maximised likelihood in some form) and one based on deterministic theory, for example, Selten's Measure of Predictive Success. This paper explores the second of these...