12:00-12:45

Frequency asymmetry in competition and cooperation: theory and experiment
Simin He (University of Amsterdam)

Frequency asymmetry is pervasive among population: left-handedness is less common than right-handedness, homosexuality is rare compared to heterosexuality. This paper investigates the effect of frequency asymmetry in competitive and cooperative environments by connecting theory and experiment. In a game-theoretical model with exogenous population types, we show that competitive games favour the minority type when they are sufficiently rare, whereas coordination games tend to benefit the majority type. In a series of laboratory experiments, we find a sharp difference in earnings between population types. In agreement with the theoretical predictions, the earnings are positively (negatively) correlated with the type frequency under cooperative (competitive) conditions; in contrast with the standard model, even modest frequency asymmetry yields large payoff inequality.

Field: Experimental /Behavioral economics

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12:45- 13:30

Who’s afraid of their gay neighbors? A study of revealed discrimination in housing decisions
Lydia Geijtenbeek (University of Amsterdam)

Using a unique data set of neighboring households, we test whether discrimination against gays influences housing decisions. We find that households with new gay neighbors are more likely to move away within 5 years, while street fixed effects greatly reduce this effect. The effect is strongest among younger people, couples, and households with children. We provide some evidence that these results are not driven by discrimination, but by a preference for families with children to live near other children

Field: Education/Labor economics