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We study sequential parimutuel betting markets with asymmetrically informed bettors, usingan experimental approach. In one treatment, groups of eight participants play twenty repetitionsof a sequential betting game. The second treatment is identical, except that bettors are observedby other...
The employment relationship is characterized by incomplete contracts. Labor contracts often take the form of a fixed wage without explicit performance incentives meaning that workers have a large degree of discretion over effort levels. As a consequence, an employee’s general jobattitude...
Myopic loss aversion (MLA) has been established as one prominentexplanation for the equity premium puzzle. In this … investment flexibility seems to be at least as relevant asfeedback frequency for the effects of myopic loss aversion. When …
foundation for this effect is given by the behavioralconcept of myopic loss aversion (MLA). The consequences of MLA have been … this gap we conduct the first experiment on MLA in which thedegree of myopia is manipulated to change over time. Our …
In this paper we show that a simple model of fairness preferences explains major experimental regularities of common … pool resource (CPR) experiments. The evidence indicates that in standard CPR games without communication and without …
? Fairness norms mightplay an important role in wage-setting decisions. We will explore theoretically and experimentallypossible … fairness considerations of the involved parties. …
Fairness like other social norms is usually stabilized by punishing norm deviations. Reward uncertainty, however … experiment determines endogenously whether unfair offers are detected andsanctionable. In our experiment a proposer and a …
In this paper we reply to Binmore and Shaked's criticism of the Fehr-Schmidt model of inequity aversion. We put the …
This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...