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The market for retail financial products (e.g., investment funds or insurances) is marred by information asymmetries. Clients are not well informed about the quality of these products. They have to rely on the recommendations of advisors. Incentives of advisors and clients may not be aligned,...
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In a credence goods game with an expert and a consumer, we study experimentally the impact of two devices that are predicted to induce consumer-friendly behavior if the expert has a propensity to feel guilty when he believes that he violates the consumerʼs payoff expectations: (i) an...
Persistent link: https://www.econbiz.de/10011049695
Actual behaviour is influenced in important ways by moral emotions, for instance guilt or shame. The framework of dynamic psychological games allows the economic modelling of such emotions. Our experimental study uses psychological scales to measure individuals’ dispositions to experience...
Persistent link: https://www.econbiz.de/10011051360
of fairness and thus may change sellers’ decisions. We conduct ultimatum game experiments in which only the sellers are …
Persistent link: https://www.econbiz.de/10011110716
Although relative performance schemes are pervasive in organizations reliable empirical dataon induced sabotage behavior is almost non-existent. We study sabotage in tournaments in acontrolled laboratory experiment and are able to confirm one of the key insights from theory:effort and sabotage...
Persistent link: https://www.econbiz.de/10005868022
of theory and experiments that have identified trust and reciprocity in economics and human behavior. …This survey explores the contributions of behavioral economics, laboratory experiments, and field experiments to our … trust and reciprocity, departing from pure self-interest in the understanding of "homo economicus", begins the discussion …
Persistent link: https://www.econbiz.de/10010960086
We experimentally show that current models of reciprocity are incomplete in a systematic way using a new variant of the …. Among the variety of reciprocity models, only one accommodates (rather than predicts) parts of our findings. We discuss ways …
Persistent link: https://www.econbiz.de/10010594622
reciprocity. In doing so we replicate and extend the results first reported by Croson and Buchan (1999). We find that men exhibit … greater trust than women do while women show much higher levels of reciprocity. Trusting behavior is driven strongly by …
Persistent link: https://www.econbiz.de/10010263242