Abstract This study experimentally evaluates the risk preferences of children and adolescents living in an urban Chinese environment. We use a simple binary choice task that tests aversion, as well prudence. is first test for prudence adolescents. Our results reveal subjects from grades 5 to 11 (10 17 years) make mostly risk-averse prudent choices. The choices 3rd graders (8 9 do not differ statistically neutral benchmarks, but at same time they also find evidence transmission preferences....

The organization of collective action is extremely important for societies. A main reason that many the key problems societies face are public good problems. We present results from a series laboratory experiments with large groups up to 100 subjects. Our demonstrate groups, in which impact an individual contribution (MPCR) almost negligible, able provide same way as small much higher. Nevertheless, we find variations MPCR have strong effect on contributions. develop hypothesis concerning...

We study prudence and temperance (next to risk aversion) in social settings. Previous experimental studies have shown that these higher-order preferences affect the choices of individuals deciding privately on lotteries only their own payoff. Yet, many risky financially relevant decisions are made settings households or organizations. elicit systematically vary how an individual's decision is (alone while communicating with a partner) who affected by (only individual partner as well). In...

Abstract This study measures higher order risk preferences and their consistency. We explore the role of country differences, variation stakes, framing lotteries. observe a robust dichotomous pattern choice behavior in China, United States, Germany. The majority choices are consistent with mixed aversion or risk‐loving behavior. also find this after 10‐fold increase stakes. Finally, our results reveal that is strengthened if lotteries displayed compound instead reduced form. In follow‐up...

We experimentally study the role of reputation in procurement using two common mechanisms: price‐based and buyer‐determined auctions. While buyers are bound to buy from lowest bidder auctions, they can choose between bidders Only latter consider bidders. find that supply higher quality auctions leading market efficiencies these Accordingly, prefer auction over auction, while only half do so. A more detailed analysis buyers' bidders' behavior profits provides insights into their mechanism choice.

We study higher-order risk preferences, i.e. prudence and temperance, next to aversion in social settings. Previous experimental studies have shown that preferences affect the choices of individuals deciding privately on lotteries only their own pay-off. Yet, most risky financially relevant decisions field are made settings households or organizations. aim narrow gap between laboratory evidence by creating a more realistic decision making environment allows us identify influence different...

The dynamics of behavior observed in standard public-good experiments can be explained by imperfect conditional cooperation combined with social learning (Fischbacher and Gächter, 2010). But it is unclear what determines first-round contributions. We argue that contributions depend on the difference between actual marginal per capita return (MPCR) minimal MPCR necessary to create a dilemma for given group size. use novel connected-lab design allows members large groups simultaneously...

Since Mancur Olson's "Logic of collective action" it is common conviction in social sciences that large groups the prospects a successful organization actions are rather bad. Following logic, impact an individual's costly contribution becomes smaller if group gets larger and, consequently, incentive to cooperate decreases with size. Conducting series laboratory experiments up 100 subjects, we demonstrate logic does not generally account for observed behavior. Large which individual almost...

We investigate learning and the development of capability to backward induct in children young adults aged 6 23 under controlled laboratory conditions. The experimental design employs a modified version race game. As original game (see Burks et al., 2009, Dufwenberg 2010, Gneezy Levitt 2011), subjects need apply induction order solve games. find that subjects’ improves with age, but this process systematically differs across gender. Our repetition games provides insights into diff erences...

The paper by Peter Bußwolder, Swetlana Dregert and Letmathe presents results from an innovative laboratory experiment designed to study reactions job promotions.The is framed as employment relation.The roles in this relation are determined based on the of a quiz.The first factor 2 × design varies whether person answering more questions correctly quiz assigned role dictator or recipient ("fair" "unfair" treatment).Dictators (called "supervisors") decide about split fixed pie between...

Diese Studie untersucht mit Hilfe von Laborexperimenten, wie sich die Fahigkeit, Ruckwartsinduktion zu betreiben, dem Alter entwickelt. Teilnehmer im zwischen 6 und 23 Jahren spielen dazu eine modifizierte Version des 'Race Game' (vgl. auch Burks et al., 2009, Dufwenberg 2010, Gneezy Levitt 2011), das durch gelost werden kann. Dies gelingt alteren Teilnehmern haufiger als jungeren. Gleichzeitig deuten Daten auf systematische Unterschiede dieser Entwicklung Mannern Frauen hin. Durch...

We experimentally study the role of reputation in procurement using two common mechanisms: price-based and buyer-determined auctions. While buyers are bound to buy from lowest bidder auctions, they can choose between bidders Only latter consider bidders. find that supply higher quality auctions leading market efficiencies these Accordingly, prefer auction over auction, while only half do so. A more detailed analysis buyers’ bidders’ behavior profits provides insights into their mechanism choice.