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We examine the significance of fourty-one potential covariates of bitcoin returns for the period 2010–2018 (2872 daily observations). The recently introduced principal component-guided sparse regression is employed. We reveal that economic policy uncertainty and stock market volatility are among the most important variables for bitcoin. We also trace strong evidence of bubbly bitcoin behavior in the 2017–2018 period.

We examine the significance of fourty-one potential covariates of bitcoin returns for the period 2010-2018 (2,872 daily observations). The principal component-guided sparse regression is employed, introduced by Tay et al. (2018). We reveal that economic policy uncertainty and stock market volatility are among the most important variables for bitcoin. We also trace strong evidence of bubbly bitcoin behavior in the 2017-2018 period.

We argue that in the ultimatum game the eects of altruistic behavior and reciprocity vary more in the spectrum of positively compared to negatively-valenced relationships. Thus, we suggest that social distance eects are asymmetric. Our experimental results support this hypothesis; in the region of positively-valenced relationships, the proposers increase the percentage they oer as relationship quality increases more drastically compared to when the relationship is negatively-valenced, in which case they appear more invariant to relationship eects. Also, by eliciting a minimum share which the responder is willing to accept out of the total sum, we provide clearer results on the social distance and stakes eects on the latter's behavior. We nd a negative eect of relationship quality on the minimum acceptable share. This contradicts a strand of the literature which suggests that closer-in-group individuals may be punished more severely, so that cooperation in a group is maintained.