We conduct a repeated VCM (voluntary contribution mechanism) experiment using the strategy method. We compare a partner and a stranger design and find that participants in the partner treatment provide (i) higher initial contributions, (ii) higher contributions on average over all periods, and (iii) contributions that do not vary more strongly with past contributions than participants in the st...

This paper examines GMM and ML estimation of econometric models and the theory of Hausman tests with sampling weights. Weighted conditional GMM can be more e$cient than weighted conditional MLE, an ine$cient alternative to full information MLE under choice-based sampling, unless regressions have homoscedastic additive disturbances or sampling weights are independent of exogenous variables. GMM ...

This paper considers transactions involving Prisoners’ Dilemmas with an outside option. In the unique subgame perfect equilibrium of the game no interaction takes place. Since there is no official legal system of contract enforcement cooperation cannot be obtained. Intermediation offers adequate information and/or enforcement to crowd out defectors and to yield social optimality. An experiment ...

Dynamic mesh adaption on unstructured grids is a powerful tool for computing unsteady ows that require local grid modiications in order to eeciently resolve solution features. For such ows, the coarsening/reenement step must be completed every few time steps, so its eeciency must be comparable to that of the ow solver. For this work, we consider an edge-based adaption scheme that has shown good...

A growing literature reports the conclusions that: (a) expected utility theory does not provide a plausible theory of risk aversion for both small-stakes and large-stakes gambles; and (b) this decision theory should be replaced with an alternative theory characterized by loss aversion. This paper explains that the arguments in previous literature fail to support these conclusions. Either concav...

The quadratic scoring rule (QSR) is often used to guarantee an incentive compatible elicitation of subjective probabilities over events. Experimentalists have regularly not been able to ensure that subjects fully comprehend the consequences of their actions on payoffs given the rules of the games. In this note, we present a procedure that allows the transparent use of the QSR even in multiple-c...

We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed economy and an international economy. The main findings are the following. (i) There is clear evidence of a vicious circle in the dynamic interaction between the wage tax and unemployment. (ii) In the short run employment is boosted by budget deficits. However, subsequent tax rate a...

An economy is presented where trade is beneficial but not assumed. If trade is to occur, it must arise endogenously as either barter or mediated trade. The role decision costs play in the development of trade is explicitly recognized. The theoretical model is examined in an experimental setting by imbedding it in a computer trading game. The data obtained from the experiments are used to examin...

The debate in equilibrium selection appears to have culminated in the formation of two schools of thought: those who favor equilibrium selection based on rational coordination and those who favor zero-rationality adaptation. We examine four deductive selection principles and find that each fails to explain experimental data. We propose an inductive selection principle based on simple learning d...

The Versatile Advection Code is a general tool for solving hydrodynamical and magnetohydrodynamical problems arising in astrophysics. We compare the performance of the code on diierent computer platforms, including work stations and vector and parallel supercom-puters. Good parallel scaling can be achieved with the data parallelism expressed in High Performance Fortran. With the aid of the auto...