We perform an experiment on social insurance to provide a laboratory replica of some important features of the welfare state. In the experiment, all individuals in a group decide whether to make a costly effort, which produces a random (independent) outcome for each one of them. The group...

This study disentangles experimentally imitation, reinforcement, and reciprocity in repeated prisoners' dilemmas. We compare a simple situation in which players interact only with their neighbours (local interaction) with one where players interact with all members of the population (group...

We consider an oligopolistic market game, in which the players are competing firms in the same market of a homogenous consumption good. The consumer side is represented by a fixed demand function. The firms decide how much to produce of a perishable consumption good, and they decide upon a...

Experimental evidence suggests that agents in social dilemmas have belief-dependent, other-regarding preferences. But in experimental games such preferences cannot be common knowledge, because subjects play with anonymous co-players. We address this issue theoretically and experimentally in the...

Werner Güth's ultimatum game played a key role in the development of multiple research areas, several of which are highlighted.

The effect of unilateral and mutual partner selection in the context of prisoner's dilemmas is examined. Participants played simultaneously several finitely repeated, two-person prisoner's dilemma games. Results show that unilateral choice leads to lower defection and fewer exits than mutual...

Bounded rational behaviour is commonly observed in experimental games and in real life situations. Neuroeconomics can help to understand the mental processing underlying bounded rationality and out-of-equilibrium behaviour. Here we report results from a recent study on the neural basis of...

We analyze a bargaining protocol recently proposed in the literature vis-à-vis unconstrained negotiation. This new mechanism extracts “gains from trade” inherent in the differing valuation of two parties towards various issues where conflict exists. We assess the role of incomplete vs....

"Beauty-contest is a game in which participants have to choose, typically, a number in [0,100], the winner being the person whose number is closest to a proportion of the average of all chosen numbers. We describe and analyze Beauty-contest experiments run in newspapers in UK, Spain, and Germany...