Bracht, Juergen (2010): Contracting in the trust game.
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We present a simple mechanism that can be implemented in a simple experiment. In a modified trust game, the allocator can offer to pay the investor to cooperate. The mechanism is successful at implementing efficient outcomes: participants manage to achieve an efficient outcome, when this is possible, two—thirds of the time. While these results are encouraging, we find evidence that both concerns for fairness and motivation crowding out distort the incentives presented in the mechanism.
|Item Type:||MPRA Paper|
|Original Title:||Contracting in the trust game|
|Keywords:||compensation mechanism, side payment, trust game, signaling, crowding out, concerns, for equity, taste for cooperation|
|Subjects:||H - Public Economics > H4 - Publicly Provided Goods > H42 - Publicly Provided Private Goods
D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C92 - Laboratory, Group Behavior
|Depositing User:||Juergen Bracht|
|Date Deposited:||02. Aug 2010 08:30|
|Last Modified:||30. Dec 2015 22:46|
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Contracting in the trust game. (deposited 29. Jul 2010 02:35)
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