This paper presents an experimental investigation of strong indirect reciprocity. We examine both generalized indirect reciprocity (if A helps B then B helps C) and social indirect reciprocity (if A helps B then C helps A), in a setting where reciprocal behavior cannot be explained by strategic...

In this paper, we re-examine various previous experimental studies of the Centipede Game in the literature. These experiments found that players rarely follow the subgame-perfect equilibrium strategies of the game, and various modifications to the game were proposed to explain the outcomes of...

Conventions can be narrowly interpreted as coordinated ways of equilibrium play, i.e., a specific convention tells all players in a game with multiple strict equilibria which equilibrium to play. In our view, coordination often takes place before learning about the games. Thus, one has to...

We experimentally study behavior in a simple voting game where players have private information about their preferences. With random matching, subjects overwhelmingly follow the dominant strategy to exaggerate their preferences. Applying the linking mechanism suggested by Jackson and...

This paper revisits and extends the experiment on the solidarity game by Selten and Ockenfels (1998). We replicate the basic design of the solidarity game and extend it in order to test the robustness of the 'fixed total sacrifice' effect and the applied strategy method. Our results only...

We present laboratory experiments of five different multi-unit auction mechanisms. Two units of a homogeneous object were auctioned off among two bidders with flat demand for two units. We test whether expected demand reduction occurs in open and sealed-bid uniform-price auctions. Revenue...

The intention to “invest” in the Trust Game in extensive form revealed by a move could conceal different motivations. Whether the motive hidden beneath the manifest behaviour of the first mover is the desire to invest in a relationship of mutual advantage with the trustee or the desire to be...

Several online market sites, such as eBay, have implemented reputation management mechanisms in order to improve cooperation. In this article, we aim at investigating the emergence of trust and cooperation in presence of reputation mechanism. In a series of experiments based on the trust game...

An impure public good is a commodity that combines public and private characteristics in fixed proportions. Green goods such as dolphin-friendly tuna or green electricity programs provide increasings popular examples of impure goods. We design an experiment to test how the presence of impure...

We assess the biological basis of expected utility anomalies through an experiment of the Allais paradox. A questionnaire study of 120 subjects replicates the anomalies and further gathers information about the respondents’ bio-characteristics, such as gender, age, parenthood, handedness,...