This paper investigates infrastructure investment in markets where regulation is subject to varying degrees of manipulation by elected politicians. Based on a model of price regulation in a market with increasing demand and long-term returns on investment we construct a multi-period game between...

We investigate contributions to the provision of public goods on a network when efficient provision requires the formation of a star network. We provide a theoretical analysis and study behavior in a controlled laboratory experiment. In a 2x2 design, we examine the effects of group size and the...

In a system of proportional representation, we study the interaction between a voter's turnout decision and her party choice, and how these relate to party polarization. Quantal response equilibria predict such interaction effects. In particular they predict (i) a Polarization Effect: reduced...

Credit default swaps (CDS) played an important role in the financial crisis of 2008. While CDS can be used to hedge risks, they can also be used for speculative purposes (as occurred during the financial crisis) and regulations have been proposed to limit such speculative use. Here, we provide...

Performance ranking is common across a range of professional and recreational domains. Even when it has no economic consequences but does order people in terms of their social standing, anticipating such performance ranking may impact how people feel and perform. We examined this possibility by...

Competition involves two dimensions, rivalry for resources and social-status ranking. In our experiment we exclude the first dimension and investigate gender differences in the preference for status ranking. Participants perform a task under non-rivalry incentives. Before doing so, individuals...

We develop a tractable theory to study the impact of biased media on election outcomes, voter turnout and welfare. News released by media allows voters to infer the relative appeal of the two candidates, and the closeness of elections. In large elections, the former determines the election...

This paper provides experimental evidence showing that indirectreciprocity may important in economic decision making and in thedevelopment of group norms. We study a `repeated helping game' withrandom pairing in large groups, with individuals equally dividedbetween donors and recipients. Donors...

A series of experiments in Albania and the Netherlands give us the opportunity to compare behavioral patterns related to tax evasion. Subjects have to decide between a random 'registered' income, the realization of which will be known to the experimenter for sure, and a random 'unregistered'...

This paper studies behavior in experiments with a linear voluntary contributions mechanism for public goods conducted in Japan, the Netherlands, Spain and the USA. The same experimental design was used in the four countries. Our 'contribution function' design allows us to obtain a view of...