First published in 1984. Routledge is an imprint of Taylor & Francis, an informa company.

Experimental Business Research includes papers that were presented at the First Asian Conference on Experimental Business Research held at the Hong Kong University of Science and Technology (HKUST), on December 7-10, 1999. The conference was organized by the Center for Experimental Business Research (cEBR) at the HKUST. The papers presented at the conference and a few others that were solicited especially for this volume contain original research on individual and interactive decision behavior in various branches of business research including, but not limited to, economics, marketing, management, finance, and accounting. Experimental Business Research is suitable as a secondary text for a graduate level course, and as a reference for researchers and practitioners in industry.

This book is about the interplay of theory and experimentation on group decision making in economics. The theories that the book subjects to experimental testing mostly come from the theory of games. The decisions investigated in the book mostly concern economic interaction like strict competition. two-person bargaining. and coalition formation. The underlying philosophy of the articles collected in this book is consistent with the opinion of a growing number of economists and psychologists that economic issues cannot be understood fully just by thinking about them. Rather. the interplay between theory and experimentation is critical for the development of economics as an observational science (Smith. 1989). Reports of laboratory experiments in decision making and economics date back more than thirty years (e.g . Allais. 1953; Davidson. Suppes. and Siegel. 1957; Flood. 1958; Friedman. 1%3; Kalisch. Milnor. Nash. and Nering. 1954; Lieberman. 1%0; Mosteller and Nogee. 1951; Rapoport. Chammah. Dwyer. and Gyr. I %2; Siegel and Fouraker. I %0; Stone. 1958). However. only in the last ten or fifteen years has laboratory experimentation in economics started its steady transformation from an occasional curiosity into a regular means for investigating various economic phenomena and examining the role of economic institutions. Groups of researchers in the USA and abroad have used experimental methods with increasing sophistication to attack economic problems that arise in individual decision making under risk. two-person bargaining."

Rami Zwick Hong Kong University of Science and Technology Amnon Rapoport University of Arizona And Hong Kong University of Science and Technology This volume (and volume II) includes papers that were presented at the Second Asian Conference on Experimental Business Research held at the Hong Kong University of Science and Technology (HKUST) on December 16-19, 2003. The conference was a follow up to the first conference that was held on December 7-10, 1999, the papers of which were published in the first volume (Zwick, Rami and Amnon Rapoport (Eds. ), (2002) Experimental Business Research. Kluwer Academic Publishers: Norwell, MA and Dordrecht, The Netherlands). The con ference was organized by the Center for Experimental Business Research (cEBR) at HKUST and was chaired by Amnon Rapoport and Rami Zwick. The program committee members were Paul Brewer, Kenneth Shunyuen Chan, Soo Hong Chew, Sudipto Dasgupta, Richard Fielding, James R. Frederickson, Gilles Hilary, Ching-Chyi Lee, Siu Fai Leung, Ling Li, Francis T Lui, Sarah M Mcghee, Fang Fang Tang, Winton Au Wing Tung and Raymond Yeung. The papers presented at the conference and a few others that were solicited especially for this volume contain original research on individual and interactive decision behavior in various branches of business research including, but not limited to, economics, marketing, management, finance, and accounting. The following introduction to the field of Experimental Business Research and to our center at HKUST replicates the introduction from Volume II."

PREFACE Amnon Rapoport University of Arizona and Hong Kong University of Science and Technology Rami Zwick Hong Kong University of Science and Technology This volume (and volume III) includes papers that were presented and discussed at the Second Asian Conference on Experimental Business Research held at the Hong Kong University of Science and Technology (HKUST) on December 16-19, 2003. The conference was a follow up to the ?rst conference that was held on December 7-10, 1999, the papers of which were published in the ?rst volume (Zwick, Rami and Amnon Rapoport (Eds.), (2002) Experimental Business Research. Kluwer Academic Publishers: Norwell, MA and Dordrecht, The Netherlands). The conference was organized by the Center for Experimental Business Research (cEBR) at HKUST and was chaired by Amnon Rapoport and Rami Zwick. The program committee members were Paul Brewer, Kenneth Shunyuen Chan, Soo Hong Chew, Sudipto Dasgupta, Richard Fielding, James R. Frederickson, Gilles Hilary, Ching- Chyi Lee, Siu Fai Leung, Ling Li, Francis T Lui, Sarah M Mcghee, Fang Fang Tang, Winton Au Wing Tung, and Raymond Yeung. The papers presented at the conference and a few others that were solicited especially for this volume contain original research on individual and interactive decision behavior in various branches of business research including, but not limited to, economics, marketing, management, ?nance, and accounting.

The existence of environmental dilemmas and political conflicts leads us to appreciate the need for individuals and groups to behave strategically in order to achieve their goals and maintain their wellbeing. Global issues such as climate change, resource depletion, and pollution, as well as revolts and protests against corporations, regimes, and other central authorities, are the result of increased levels of externalities among individuals and nations. These all require policy intervention at international and global levels. This book includes chapters by experts proposing game theoretical solutions and applying experimental design to a variety of social issues related to global and international conflicts over natural resources and the environment. The focus of the book is on applications that have policy implications, relevance and, consequently, could lead to the establishment of policy dialogue. The chapters in the book address issues that are global in nature, such as international environmental agreements over climate change, international water management, common pool resources, public goods, international fisheries, international trade, and collective action, protest, and revolt. The book's main objective is to illustrate the usefulness of game theory and experimental economics in policy making at multiple levels and for various aspects related to global and international issues. The subject area of this book is already widely taught and researched, but it continues to gain popularity, given growing recognition that the environment and natural resources have become more strategic in human behavior.

Experimental Business Research includes papers that were presented at the First Asian Conference on Experimental Business Research held at the Hong Kong University of Science and Technology (HKUST), on December 7-10, 1999. The conference was organized by the Center for Experimental Business Research (cEBR) at the HKUST. The papers presented at the conference and a few others that were solicited especially for this volume contain original research on individual and interactive decision behavior in various branches of business research including, but not limited to, economics, marketing, management, finance, and accounting. Experimental Business Research is suitable as a secondary text for a graduate level course, and as a reference for researchers and practitioners in industry.

This book is about the interplay of theory and experimentation on group decision making in economics. The theories that the book subjects to experimental testing mostly come from the theory of games. The decisions investigated in the book mostly concern economic interaction like strict competition. two-person bargaining. and coalition formation. The underlying philosophy of the articles collected in this book is consistent with the opinion of a growing number of economists and psychologists that economic issues cannot be understood fully just by thinking about them. Rather. the interplay between theory and experimentation is critical for the development of economics as an observational science (Smith. 1989). Reports of laboratory experiments in decision making and economics date back more than thirty years (e.g . Allais. 1953; Davidson. Suppes. and Siegel. 1957; Flood. 1958; Friedman. 1%3; Kalisch. Milnor. Nash. and Nering. 1954; Lieberman. 1%0; Mosteller and Nogee. 1951; Rapoport. Chammah. Dwyer. and Gyr. I %2; Siegel and Fouraker. I %0; Stone. 1958). However. only in the last ten or fifteen years has laboratory experimentation in economics started its steady transformation from an occasional curiosity into a regular means for investigating various economic phenomena and examining the role of economic institutions. Groups of researchers in the USA and abroad have used experimental methods with increasing sophistication to attack economic problems that arise in individual decision making under risk. two-person bargaining."

PREFACE Amnon Rapoport University of Arizona and Hong Kong University of Science and Technology Rami Zwick Hong Kong University of Science and Technology This volume (and volume III) includes papers that were presented and discussed at the Second Asian Conference on Experimental Business Research held at the Hong Kong University of Science and Technology (HKUST) on December 16-19, 2003. The conference was a follow up to the ?rst conference that was held on December 7-10, 1999, the papers of which were published in the ?rst volume (Zwick, Rami and Amnon Rapoport (Eds.), (2002) Experimental Business Research. Kluwer Academic Publishers: Norwell, MA and Dordrecht, The Netherlands). The conference was organized by the Center for Experimental Business Research (cEBR) at HKUST and was chaired by Amnon Rapoport and Rami Zwick. The program committee members were Paul Brewer, Kenneth Shunyuen Chan, Soo Hong Chew, Sudipto Dasgupta, Richard Fielding, James R. Frederickson, Gilles Hilary, Ching- Chyi Lee, Siu Fai Leung, Ling Li, Francis T Lui, Sarah M Mcghee, Fang Fang Tang, Winton Au Wing Tung, and Raymond Yeung. The papers presented at the conference and a few others that were solicited especially for this volume contain original research on individual and interactive decision behavior in various branches of business research including, but not limited to, economics, marketing, management, ?nance, and accounting.

Rami Zwick Hong Kong University of Science and Technology Amnon Rapoport University of Arizona And Hong Kong University of Science and Technology This volume (and volume II) includes papers that were presented at the Second Asian Conference on Experimental Business Research held at the Hong Kong University of Science and Technology (HKUST) on December 16-19, 2003. The conference was a follow up to the first conference that was held on December 7-10, 1999, the papers of which were published in the first volume (Zwick, Rami and Amnon Rapoport (Eds. ), (2002) Experimental Business Research. Kluwer Academic Publishers: Norwell, MA and Dordrecht, The Netherlands). The con ference was organized by the Center for Experimental Business Research (cEBR) at HKUST and was chaired by Amnon Rapoport and Rami Zwick. The program committee members were Paul Brewer, Kenneth Shunyuen Chan, Soo Hong Chew, Sudipto Dasgupta, Richard Fielding, James R. Frederickson, Gilles Hilary, Ching-Chyi Lee, Siu Fai Leung, Ling Li, Francis T Lui, Sarah M Mcghee, Fang Fang Tang, Winton Au Wing Tung and Raymond Yeung. The papers presented at the conference and a few others that were solicited especially for this volume contain original research on individual and interactive decision behavior in various branches of business research including, but not limited to, economics, marketing, management, finance, and accounting. The following introduction to the field of Experimental Business Research and to our center at HKUST replicates the introduction from Volume II."

The existence of environmental dilemmas and political conflicts leads us to appreciate the need for individuals and groups to behave strategically in order to achieve their goals and maintain their wellbeing. Global issues such as climate change, resource depletion, and pollution, as well as revolts and protests against corporations, regimes, and other central authorities, are the result of increased levels of externalities among individuals and nations. These all require policy intervention at international and global levels. This book includes chapters by experts proposing game theoretical solutions and applying experimental design to a variety of social issues related to global and international conflicts over natural resources and the environment. The focus of the book is on applications that have policy implications, relevance and, consequently, could lead to the establishment of policy dialogue. The chapters in the book address issues that are global in nature, such as international environmental agreements over climate change, international water management, common pool resources, public goods, international fisheries, international trade, and collective action, protest, and revolt. The book's main objective is to illustrate the usefulness of game theory and experimental economics in policy making at multiple levels and for various aspects related to global and international issues. The subject area of this book is already widely taught and researched, but it continues to gain popularity, given growing recognition that the environment and natural resources have become more strategic in human behavior.