Bubbles in asset markets have been documented in numerous experimental studies. However, all experiments in which bubbles occur pay dividends after each trading day. In this paper we study whether bubbles can occur in markets without dividends. We investigate the role of two features that are...

In this paper, we analyze the effect of the criminal justice system on juvenile recidivism. Using a unique sample of German inmates, we are able to disentangle the selection into criminal and juvenile law from the subsequent recidivism decision of the inmate. We base our identification strategy...

We conduct a large-scale field experiment with 2,440 subjects in which we exogenously vary the price of contributing to the closest empirical counterpart of an infinitely large public good, climate change mitigation. We find that the price effect is robust and negative, but quantitatively weak,...

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a function of the policy weights in the central bank’s Taylor rule. By estimating the time-varying weights that the FED attaches to inflation and the output gap, we show that the...

The “aging employee” has recently become a hot topic in many fields of behavioural research. With the aim to determine the effects of different incentive schemes (competition, social or increased monetary incentives) on performance of young and older subjects, we look at behaviour of a group...

In this article we define and characterize a class of asymmetric leximin solutions, that contains both the symmetric leximin solution of Imai[5] and the two-person asymmetric Kalai-Smorodinsky solution of Dubra [3] as special cases. Solutions in this class combine three attractive features: they...

In the climate policy debate, a rhetoric has evolved that attributes a high potential to "voluntary climate action". We turn to the population of Germany, the fourth largest cumulative GHG emitter, to obtain an Internet-)representative estimate of the individual willingness to abate one ton of...

The beauty contest game has been used to analyze how many steps of reasoning subjects are able to perform. A common finding is that a majority seem to have low levels of reasoning. We use eye-tracking to investigate not only the number chosen in the game, but also the strategies in use and the...

A well—known result from the theory of finitely repeated games states that if the stage game has a unique equilibrium, then there is a unique subgame perfect equilibrium in the finitely repeated game in which the equilibrium of the stage game is being played in every period. Here I show that...

It is well known that the rock-paper-scissors game has no pure saddle point. We show that this holds more generally: A symmetric two-player zero-sum game has a pure saddle point if and only if it is not a generalized rock-paper-scissors game. Moreover, we show that every finite symmetric...