We present controlled experimental evidence on how corruption affects the private provision of public goods. Subjects in our experiment donate to non-profit associations. The associations provide local public goods that benefit all subjects. We compare average contributions between two...

Veronika Grimm, Technische Universität Nürnberg, und Axel Ockenfels, Max-Planck-Institut zur Erforschung von Gemeinschaftsgütern, Bonn, kritisieren das aktuelle Strommarktdesign in Deutschland, das durch staatliche Eingriffe und fehlende Anpassungen an ein dezentrales Stromsystem ineffizient...

Die neue Bundesregierung wird vor der großen Herausforderung stehen, die wirtschaftliche Lage im Land mit einer mutigen Wirtschaftspolitik zu verbessern. Sie muss ein Umfeld schaffen, das Innovationen anreizt, Wachstumspotenziale hebt, sowie effektive Staatskapazitäten aufbauen, um damit auch...

Global geopolitical tensions have risen in recent years, and European energy prices have been volatile following Russia’s invasion of Ukraine. Some analysts have suggested that these shifting conditions may significantly affect FDI both to and from Germany. To shed light on this issue and...

We analyse belief formation in social networks in a laboratory experiment. Our 3 x 3 design varies the network structure and the amount of information agents have about it. Agents observe an imperfect private signal on the true state of the world and then repeatedly guess the true state,...

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, which leads to inefficiency. Applying a linking mechanism suggested...