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To investigate the external validity of Ultimatum and Dictator game behavior we conduct experiments in field settings with naturally occurring variation in “social framing.” Our participants are students at Middlebury College, non-traditional students at Kansas City Kansas Community College (KCKCC), and employees at a Kansas City distribution center. Ultimatum game offers are ordered: KCKCC > employee > Middlebury. In the Dictator game employees are more generous than students in either location. Workers behaved distinctly from both student groups in that their allocations do not decrease between games, an effect we attribute to the social framing of the workplace.

There are several ways to define words. One is to ascertain the formal definition by looking it up in the dictionary. Another is to identify what it is that you want the word-label to differentiate.

This chapter provides a theory model of trade finance to explain the “great trade collapse.” The model shows that, first, the riskiness of international transactions rises relative to domestic transactions during economic downturns; and second, the exclusive use of a letter of credit in international transactions exacerbates a collapse in trade during a financial crisis. The basic model considers banks’ optimal screening decisions in the presence of counterparty default risks. In equilibrium, banks will maintain a higher precision screening test for domestic firms and a lower precision screening test for foreign firms, which constitutes the main mechanism of the model.